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News/Closed Deals

MARKETS

We work across the US. Most recent closings in North Carolina • Colorado • Ohio • Pennsylvania

Markets
  • JS MultiCapital Corporation
  • 2000 Auburn Drive, Suite 200
  • Beachwood, OH 44122
  • ph (216) 765-9000
  • fx (440) 919-0270

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HUD 223 (a) (7)

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Purpose: Refinance an existing FHA mortgage.

Eligible Properties: Properties with an existing HUD insured mortgage.

Interest Rate: Fixed rate throughout the loan term beginning from the date the loan is committed to an investor.

Term of Loan: Maximum loan term is the remaining term on the existing mortgage. Can be increased up to 12 years in order to retain project feasibility. Cannot exceed 75% of the project’s remaining economic life.

Maximum Loan Refinancing:
The lesser of:

1. The original principal balance of the existing mortgage, or
2. Amount of unpaid principal balance of the existing loan, plus

  • The required improvement cost, and
  • Any outstanding debt from capital improvements made to the property that are acceptable to HUD, and
  • All loan closing charges which includes the application fee, inspections fee, financing fee, prepayment penalties, and title and recording and legal fee, and
  • Replacements to the reserve of required deposits. You may not include the cost of defeasance of any existing bond issue.

3. 90% of net operating income.

Personal Liability: None. The FHA loan is non-recourse.

Prepayment: The loan is prepayable based on borrower preference stated when the loan is placed with an investor.

Prepayment Provisions: Lockout period followed by declining balance penalty.

Repairs: Funds for repairs can be included in the loan amount up to 15% of value or $6,500 per unit times the area high cost ratio.

Escrows: Cash escrows are required for the payment of taxes and insurance.

Replacement Reserves: Cash escrows are required as determined by the property inspection report.







Contact Kathryn Cassidy
For a personal, confidential
discussion about your
project (216) 765-9000