Apartment Building Loan - Apartment Building Mortgage

Financing to lower the interest rate, the debt service coverage and/or provide additional funds to cover project improvements for apartment or nursing home properties already insured under the 223(f), 221(d)(3), 221(d)(4), 220, 232, and 241 insurance programs.

Features

Limited due-diligence reports.
Property inspection is not required.
Appraisal is not required.
Limited applicability of environmental analysis.
Modified mortgage credit analysis.
Reduced application fee (.15%).
No inspection fee.
No equity take out, but surplus cash available to mortgagor with no limitation on distributions.

Structure
Loan Amount	lesser of: (i) Original principal of existing mortgage; or (ii) Unpaid balance plus financing fees, soft cost, prepayment penalties, discounts, reserve for replacements deposits, repairs, capital improvements, LBP testing and bond defeasance costs, if applicable
Loan to Value	no loan to value constraint
Debt Service Coverage	1.11x
Loan Terms	limited to the remaining term of the mortgage or can be extended by 12 years for project feasibility
Amortization	same as loan term
Recourse	nonrecourse
Rates	- Ginnie Mae MBS and whole loan rates priced daily - rate may be locked after borrower's acceptance of HUD's firm commitment - Interest rate buy-downs available.

Optional Features
Assumability	Fully assumable with HUD’s and Lender’s consent.
Prepayment	Any prepayment lock out or penalty periods negotiable with Investor.

Requirements
Critical & non-critical repairs may be deferred until after closing, but critical repairs must begin immediately after closing. Repair escrow 110% for nonreplacement cost items. Additional reserves required if current balance is not adequate.

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