SENIORS HOUSING 232-223(A)(7) FHA-INSURED FINANCING Non-recourse, fully assumable, streamlined refinance of existing FHA-insured loans. Eligible Properties
Project must be insured under section 232 mortgage
Loan Features
• Low, fixed interest rates • Non-recourse and fully assumable • Refinance without exiting HUD Section 232 program
Mortgage Loan Amount
Lesser of: • Original principal balance of existing insured mortgage • Unpaid principal balance of the existing mortgage plus eligible transaction costs (including certain owner elective repairs) • 1.11x underwritten debt service coverage ratio
Maximum Term
If supported by property condition report, HUD may approve a term extension to the lesser of: • 12 years beyond the remaining term of the existing mortgage • Original loan term
Prepayment
Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions
Escrow
Monthly escrows for real estate taxes, property insurance, and replacement reserves are required
Transaction Costs
• Existing debt • Prepayment penalty • Repairs (not exceeding 15% of appraised value after completion) • Property condition report (if term extension is requested) • First year MIP • Financing and placement fees • Borrower and lender legal fees • Title, recording, and survey costs • HUD application fee of 0.15% • HUD inspection fee (greater of $30/bed or 1% of repair estimate)
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