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2fno Fee Remortgage Mortagagemortgagelender I Mortgage Mortgage Lender Szh MortgageBroker Mortgage Mortgage Lender

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80% LTV for refinances

83% LTV for purchases

83% LTC for purchases

35 year amortization

35 year fixed rates

Minimum DSCR of 1.20

Up to 7.5% seller seconds

Secondary financing permitted

Non-recourse

FHA apartment mortgages are assumable

No minimum population requirements

No minimum net worth requirements

No yield maint. or defeasance prepay

Funds for repairs and improvements

Supplemental financing available

Eliminate interest rate risk

Disadvantages of the 223(f) Program

Longer processing times - 120 days at a minimum (6-9 months is typical)

Higher fees - HUD and FHA fees add to the overall cost of the loan

Mortgage Insurance Premiums (MIP) - Initial and annual premiums

Annual audited operating statements required

Replacement reserve escrows required

HUD property inspections required

Owner distribution restrictions

Is the 223(f) Multifamily Program the Right Choice for Me

At CommercialBanc, we offer apartment loans from our own portfolio - Banc Series, HUD/FHA, Fannie Mae, Freddie Mac and partner banks. Our goal is to provide the product that best meets your needs. For many borrowers, a HUD FHA insured apartment mortgage is the perfect choice.

Why Consider a HUD FHA apartment loan:

Purchases up to the lesser of 83% loan-to-value or 83% loan-to-cost including loan costs and repairs

35 year fixed rates / 35 year amortization / No balloon payment

Avoid interest rate risk and costs associated with refinancing

Property located in a declining value or distressed market and require up to 83% loan-to-value financing

Property located in a smaller (population) market

Require or prefer a non-recourse loan

Flexible prepay - No yield maintenance or defeasance prepay risk

Loan is assumable should you sell

Available for profit and not-for-profit borrowers

Detached structures and row houses eligible

Require funds for repairs or improvements

HUD FHA supplemental loan (2nd mortgage) available to fund property repairs or improvements

HUD FHA 223(f) Program Costs and Fees

Third Party Reports: appraisal, engineering report, environmental analysis and flood certification

FHA Inspection Fee: 1% of repair costs or $30 per unit if repairs are less than $3,000 unit

FHA Exam Fee: $3 per $1,000 of the loan balance

Financing Fee: 1%-3% depending on loan size and loan complexity

Permanent Placement Fee: 1%-2%

First Year Mortgage Insurance Premium: 1% of loan amount

Monthly Mortgage Insurance Premium: .45%

Borrower's Legal: Estimated at $10,000

Title & Recording Fees: TBD

HUD FHA 223(f) Escrow and Reserves

Tax and Insurance Impounds: Required

Replacement Reserves: Required - Monthly deposit required and amount depends on property condition