Apartments
Supplemental Loans for Project |
| Rockport Mortgage Corporation is an FHA-approved Mortgagee and actively provides financing utilizing the FHA insurance programs nationwide.
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| | Existing FHA Insured Loans Only |
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| Purpose | Provides mortgage insurance for a supplemental loan for the prupose of improvements or additions to a multi-family project, a nursing home, an intermediate care facility or a group practice facility covered by a FHA insured loan, without refinancing the existing mortagage. |
| Eligible Borrowers | Profit motivated, non-profit motivated and public owners are eligible. |
| Maximum Term | Amortization period is not to exceed the remaining term of the first mortgage plus 12 years. |
| Maximum Loan | 90% of cost of improvement or addition and in term to a period not longer than the remaining term of the mortgage. The maximum interest rate is presently 7%. Statutory dollar limits and statutory unit limits are applicable to the total of (1) the outstanding mortgage and (2) the supplemental loan. |
| Personal Liability | None |
| Prepayment | Typically closed for five years then open to prepayment at 5% in year six, declining 1% per year. |
| FHA Application Fees | 0.3% of the loan amount. |
| Mortgage Insurance
Premium | .50% of the outstanding loan amount annually. |
| FHA Inspection Fees | .50% of the loan amount. |
| Finance Fee | Negotiable; 1% - 3.5% |
| Timing | An application can be processed in approximately 90-120 days from submission of a complete package. |
| Funding | Qualifies for government insured mortgage-backed securities or direct Placement or may be used to credit-enhance tax-exempt bonds. |
| Interest Rate | Approximately 225 basis points over 10-Year Treasury, but subject to market conditions. |
| Territory | Nationwide |
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