Affordable Housing
Refinance & Acquisition without Substantial Rehabilitation |
Rockport Mortgage Corporation is an FHA-approved Mortgagee and actively provides financing utilizing the FHA insurance programs nationwide.
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HUD 223(f) | For Profit and Non-Profit |
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| Purpose | Provides mortgage insurance for existing apartment projects to facilitate either the refinancing or purchase of projects at least three years old. |
| Eligible
Borrowers | Profit motivated, non-profit motivated and public owners are eligible. |
| Maximum Term | 35 years |
| Maximum Loan | Refinance The lesser of:
1) The amount that can be supported by 85% of net operating income;
2) 85% of value; or
3) the greater of 80% of value or 100% of the total cost of refinancing the existing indebtedness. Acquisition The lesser of:
1) 85% of acquisition cost (i.e., total cost to close);
2) 85% of value; or
3) the amount that can be supported by 85% of stabilized net operating income. |
| Personal Liability | None |
| Prepayment | Typically closed for five years then open to prepayment at 5% prepayment fee in year six, declining 1% per year. |
| FHA Application
Fees | 0.3% of the loan amount. |
| Mortgage Insurance
Premium | 1% for the first year (payable at closing) and thereafter 0.5% of the outstanding loan amount. |
| Repairs and
Replacements | Funds for repairs, deferred maintenance and capital improvements for up to 15% of value or $6,500 per unit (may be adjusted for high cost areas) can be included in the loan amount, subject to the 85% loan to value limitations. |
Finance Fee | Negotiable; 1.5% - 2.0% typical. |
| Secondary
Financing | Surplus cash notes are permitted, up to 7.5% of the project's value. |
| Funding | Qualifies for government insured mortgage-backed securities or direct Placement or may be used to credit-enhance tax-exempt bonds. |
Interest Rate | Approximately 150-175 basis points over 10-Year Treasury, but subject to market conditions. |
Territory | Nationwide. |
| Additional
Parameters | -
Properties at least three years old (i.e. Certificates of Occupancy outstanding for at least three years on the date of application); -
A replacement reserve deposit will be required at closing. The deposit can be capitalized in the mortgage loan; -
Per "MAP" (Multifamily Accelerated Processing) Guidelines an application can be processed in approximately 60 days from submission of a complete package. It has been our experience that several HUD offices are processing the loans in less than 45 days. |
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