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)