| FHA HUD - 223(a)(7) Expedited FHA Refinance Kendall Realty Advisors LL - Chicago, IL |
HUD - 223(a)(7) - Expedited Refinance of FHA-Insured Mortgages
Low cost, fast refinancing for existing FHA 232 and Multifamily Loans,
Amortized over the remaining loan term, plus 12 years
ELIGIBLE PROPERTIES:
Apartment or healthcare properties with mortgages that are currently insured by FHA. Moderate
rehabilitation is permitted.
LOAN TYPE:
Fully amortizing permanent loan.
PREFERRED LOAN SIZE:
Any size insured mortgage is acceptable.
MAXIMUM LOAN:
The lesser of the following criteria:
1. The original principal amount of the insured mortgage(s).
2. 90% of Net Income (after the subtraction of proprietary earnings for healthcare facilities), divided
by the loan constant. FHA 232 LEAN processed under LEAN updated guidelines
3. The existing indebtedness plus transaction costs.
INTEREST RATES:
Fixed rate determined by market rates at the time of rate lock. Average 200 to 250 over 10 year
treasuries
AMORTIZATION:
The remaining term of the existing mortgage (HUD may approve a term up to 12-years beyond the
remaining term up to the original maximum term of the currently insured mortgage).
PERSONAL RECOURSE:
Non-recourse.
ASSUMABILITY:
Assumable, subject to approval.
SUBORDINATE FINANCING:
Allowable, subject to HUD criteria.
WAGE REQUIREMENTS:
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 HUD.
Thereafter, the MIP is escrowed monthly. The rate is fixed at loan endorsement.
ESCROWS:
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 HUD) are
escrowed from mortgage proceeds.
ENVIRONMENTAL ISSUES:
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 HUD requirements.
APPLICATION FEE:
An application fee of 0.3% of the requested mortgage amount is payable to HUD at the time of
application. At the time of closing, HUD can refund half of the application fee.
INSPECTION FEE:
None required by HUD.
FINANCING AND PLACEMENT FEES:
Negotiable.
CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.
OTHER HUD REQUIREMENTS:
Cash escrows or letters of credit are required for the following:
1. 10% of repair costs as a completion guarantee.
2. 2.5% of repair costs as a latent defects guarantee, due at completion of repairs.
HUD PROCESSING TIME:
One stage processing procedures:
1. Firm Commitment Stage: 30 days for review.
PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
1. Property description and location map.
2. Last 6 months rent rolls and year-to-date operating statement.
3. HUD audits for prior 3 fiscal years.
4. Current year operating budget.
5. Statement of existing debt and escrow balances.
6. Sponsor résumé.
Scott Kendall 847-903-7578 kendallrealty@gmail.com
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
Low cost, fast refinancing for existing FHA 232 and Multifamily Loans,
Amortized over the remaining loan term, plus 12 years
ELIGIBLE PROPERTIES:
Apartment or healthcare properties with mortgages that are currently insured by FHA. Moderate
rehabilitation is permitted.
LOAN TYPE:
Fully amortizing permanent loan.
PREFERRED LOAN SIZE:
Any size insured mortgage is acceptable.
MAXIMUM LOAN:
The lesser of the following criteria:
1. The original principal amount of the insured mortgage(s).
2. 90% of Net Income (after the subtraction of proprietary earnings for healthcare facilities), divided
by the loan constant. FHA 232 LEAN processed under LEAN updated guidelines
3. The existing indebtedness plus transaction costs.
INTEREST RATES:
Fixed rate determined by market rates at the time of rate lock. Average 200 to 250 over 10 year
treasuries
AMORTIZATION:
The remaining term of the existing mortgage (HUD may approve a term up to 12-years beyond the
remaining term up to the original maximum term of the currently insured mortgage).
PERSONAL RECOURSE:
Non-recourse.
ASSUMABILITY:
Assumable, subject to approval.
SUBORDINATE FINANCING:
Allowable, subject to HUD criteria.
WAGE REQUIREMENTS:
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 HUD.
Thereafter, the MIP is escrowed monthly. The rate is fixed at loan endorsement.
ESCROWS:
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 HUD) are
escrowed from mortgage proceeds.
ENVIRONMENTAL ISSUES:
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 HUD requirements.
APPLICATION FEE:
An application fee of 0.3% of the requested mortgage amount is payable to HUD at the time of
application. At the time of closing, HUD can refund half of the application fee.
INSPECTION FEE:
None required by HUD.
FINANCING AND PLACEMENT FEES:
Negotiable.
CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.
OTHER HUD REQUIREMENTS:
Cash escrows or letters of credit are required for the following:
1. 10% of repair costs as a completion guarantee.
2. 2.5% of repair costs as a latent defects guarantee, due at completion of repairs.
HUD PROCESSING TIME:
One stage processing procedures:
1. Firm Commitment Stage: 30 days for review.
PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
1. Property description and location map.
2. Last 6 months rent rolls and year-to-date operating statement.
3. HUD audits for prior 3 fiscal years.
4. Current year operating budget.
5. Statement of existing debt and escrow balances.
6. Sponsor résumé.
Scott Kendall 847-903-7578 kendallrealty@gmail.com
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
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