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General: 800.ARBOR.10

FHA® 241(a):

SUPPLEMENTAL LOAN FOR REPAIRS, ADDITIONS OR IMPROVEMENTS TO HUD FIRST MORTGAGE PROPERTIES

HUD-Insured second mortgage provided by Arbor to finance repairs, additions and improvements to multifamily properties and healthcare facilities with existing HUD-insured first mortgage.

Loan Term Generally co-terminus with the HUD first mortgage
Amortization Fully amortizing
Maximum Loan Amount Will be the lessor of:

  • 90% loan to cost
  • 90% loan to value
  • 1.11 Debt Service Coverage Ratio (combined first and second)
Rate Structure Fixed rate
Eligible Properties Apartment properties and healthcare facilities with an existing HUD-insured first mortgage
Eligible Borrowers Single asset entity (nonprofit entities eligible)
Recourse Nonrecourse, subject to HUD Regulatory Agreement
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
HUD Mortgage Insurance Premium Annual MIP Rates (Multfamily):

  • Market Rate Properties: 0.95%
  • Affordable Properties: 0.35%
  • Broadly Affordable or Energy Efficient Properties: 0.25%

 
 

Annual MIP Rates (residential healthcare):

  • Without LIHTC: 0.72%
  • With LIHTC: 0.45%

 
 

Annual MIP Rates (hospitals):

  • 0.65%
Davis Bacon Applicable, if the original underlying HUD first mortgage was subject to Davis Bacon

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