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

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

HUD 223 (a) (7)

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.