New Construction or Substantial Rehabilitation

FHA 221(d)(4)
We are obsessed with quality and perpetual improvement. As we get to know you, our approach will be optimized and tailored toward your transactional objectives.
  • Loan Term:40 years
  • Interest Rate:Fixed rate, fully amortizing
  • Non-recourse:Non-recourse
  • Assumable:Fully assumable
  • Prepayment:10% year one, then declining 1% per year; and customizable
  • Borrower:A single asset SPE
  • Commercial Space:No commercial space greater than 25% of net rentable area or 15%-30% of effective gross income of the property
  • Escrows:Preconstruction. Escrows required for taxes, insurance, working capital (2%-4% of the loan), and initial operating deficit. Balances will be released to borrower after 6 consecutive months of break-even operations.Post-Construction. Escrows required for taxes, insurance, and MIP and capital needs replacement reserves (minimum $250 per unit/annually).
  • Davis Bacon Wages:Payment of prevailing wages for contractors and subcontractors
  • Third Party Reports:Market Study, Appraisal, Environmental Report, future Capital Needs Assessment and an Architectural and Cost Review
DSCR/LTV Requirements:

For Loan Amounts up to $75 Million:

  • Property Type
  • Maximum LTC
  • Minimum DSCR
  • Subsidized
  • 90%
  • 1.11
  • Affordable
  • 87%
  • 1.15
  • Market Rate
  • 85%
  • 1.176

For Loan Amounts $75 Million and above:

  • Property Type
  • Maximum LTC
  • Minimum DSCR
  • Subsidized 1
  • 80%
  • 1.25
  • Affordable 2
  • 80%
  • 1.25
  • Market Rate
  • 75%
  • 1.3

Mortgage Insurance Premium:

  • Market Rate Properties: 0.65%
  • Market Rate Properties: 0.65%
  • Broadly Affordable or Green: 0.25%
  1. 90% or more of the units are covered by a project based Section 8 contract for at least 15 years.
  2. 15 or more year regulatory agreement after Final Endorsement with a minimum AMI set aside
Download
Email