FHA HUD 241(A)
MAXIMUM LOAN IS THE LESSOR OF:
- 90% (for-profit) or 95% (non-profit) of the cost or appraised value for new construction projects;
- or an amount which, when added to the outstanding balance of the existing insured mortgage, does not exceed the amount insurable pursuant to the applicable HUD mortgage program.
DEBT SERVICE COVERAGE
Fixed rate subject to market conditions at rate lock.
Conterminous with first mortgage if term exceeds 25 years. If remaining term is less than 25 years, HUD will consider 40 year amortization, not to exceed 75% of remaining economic life.
Amortized over remaining term of first mortgage.
- a 5-year lockout followed by a prepayment penalty of 5% in the sixth year and declining 1% per year, or
- a similar combination of lockout and penalties which cover a 10-year period, post-closing.
MORTGAGE INSURANCE PREMIUM
0.25% – 0.95% of loan amount for each 12 months of construction and 0.25% – 0.95% of the outstanding mortgage.
Energy Audit and Utility Consumption data.
Calculated at the same percentage as incurred with insurance of first mortgage loan.
- Davis Bacon Wage Rates apply if the underlying first mortgage required Davis Bacon Wage Rates.
- BSPRA and SPRA are N/A; Builder Profit is eligible.
- HUD Operating Deficit and Working Capital Escrow Requirements mirror 221d4 program, may be waived on a case by case basis by HUD.
- 1st Mortgage and Supplemental loan contain cross collateralization and cross default provisions.