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Five Advantages of FHA Multifamily Construction Loans

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The Top Five Emerging Metros for Retiree Relocation

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Home | FHA Multifamily | FHA 232 223(a)(7)
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FHA® 232/223(a)(7):

REFINANCING HUD-INSURED HEALTHCARE LOANS

Arbor provides streamlined refinancing of existing FHA-insured loans nationwide. Refinance costs, such as prepayment, are included.

Loan Term & Amortization Remaining term of the existing loan plus up to 12 years (subject to HUD approval); term cannot exceed the original term of the existing loan; loan is fully amortizing through the term of the loan
Loan Amount No cash-out; new loan amount is the lowest of:

  1. Original principal balance of existing loan
  2. 100% of the costs to refinance (current principal balance plus transaction costs, repairs and deposits to replacement reserves)
  3. Minimum debt service coverage of 1.11
Interest Rate Fixed rate subject to market conditions at time of rate lock
Eligible Properties Healthcare facilities currently insured under Sections 232 and 232/223f
Eligible Borrower Single asset entity (for profit or nonprofit)
Cash Out Not allowed
Tax & Insurance Escrows Monthly deposits to the escrows are required for property insurance, real estate taxes, reserves for replacement and mortgage insurance premiums
Recourse Non-recourse
Required Reports New Property Condition Needs Assessment (PCNA) required if last report is over two years old
Prepayment Typically 10% year one, declining 1% per year; other prepayment options available subject to market conditions
Assumable Subject to Arbor and HUD approval and payment of assumption fee
Good Faith Deposit Based on property type and loan size
Expense Escrow Yes – sufficient to cover Arbor’s expenses and third-party report costs
Origination Fee Negotiable
HUD Application Fee 0.15% of the new loan amount paid to HUD with HUD application
HUD Inspection Fee Not applicable
Legal/Closing Fee Borrower pays Arbor’s counsel fee and miscellaneous closing costs
Repairs Repairs approved by HUD can be funded by mortgage proceeds with 10% completion assurance required from owner; repairs limited to $1,500 per unit
Davis Bacon Not applicable to this program
HUD MORTGAGE INSURANCE PREMIUM (MIP) 0.50% up front; market rate 0.55% annually; LIHTC 0.45% annually

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ARBOR.COM | 800.ARBOR.10
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