Apartment or healthcare properties with mortgages that are currently insured by FHA. Moderate rehabilitation is permitted.
Fully amortizing permanent loan.
PREFERRED LOAN SIZE:
Any size insured mortgage is acceptable.
The lesser of the following criteria:
The original principal amount of the insured mortgage(s).
90% of Net Income (after the subtraction of proprietary earnings for healthcare facilities), divided by the loan constant.
The existing indebtedness plus transaction costs.
Fixed rate determined by market rates at the time of rate lock.
The remaining term of the existing mortgage (FHA may approve a term up to 12 years beyond the remaining term up to the original maximum term of the currently insured mortgage).
Assumable, subject to Walker Dunlop approval.
Allowable, subject to FHA criteria.
Davis-Bacon prevailing wage requirements do not apply.
ANNUAL MORTGAGE INSURANCE PREMIUMS:
The first year’s MIP is payable in advance of closing based on a rate established by FHA. Thereafter, the MIP is escrowed monthly. The rate is fixed at loan endorsement.
Monthly escrows for property insurance, real estate taxes, reserves for replacement, sinking fund (if applicable) and mortgage insurance premiums.
An initial deposit to replacement reserve and 100% of repair costs (both as determined by FHA) are escrowed from mortgage proceeds.
Special rules apply for properties which are located in Flood Hazard Zones as designated by FEMA.
Lead-based paint and asbestos must be abated in accordance with FHA requirements.
An application fee of 0.3% of the requested mortgage amount is payable to FHA at the time of application. At the time of closing, FHA can refund half of the application fee.
None required by FHA.
FINANCING AND PLACEMENT FEES:
Standard transaction costs, including legal fees, title insurance and survey.
OTHER FHA REQUIREMENTS:
Cash escrows or letters of credit are required for the following:
10% of repair costs as a completion guarantee.
2.5% of repair costs as a latent defects guarantee, due at completion of repairs.
FHA PROCESSING TIME:
One stage processing procedures:
Firm Commitment Stage: 30 days for review.
PRELIMINARY SUBMISSION PACKAGE:
- Include the following in your request for a loan quote:
- Property description and location map.
- Last 6 months rent rolls and year-to-date operating statement.
- FHA audits for prior 3 fiscal years.
- Current year operating budget.
- Statement of existing debt and escrow balances.
- Sponsor résumé.
This is a summary of general program terms, which are subject to change. This is not a commitment to lend.