Multifamily and Healthcare properties with current FHA insured loans.
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Yes. Minor repairs are allowed not to exceed $1,500 per unit. If the Physical Capital Needs Assessment (PCNA) report reflects required repairs over $1,500 per unit, you would not be eligible for this particular program.
1.11x minimum DSCR For-profit entities
1.05x minimum DSCR Non-profit entities
No appraisal is required. The only 3rd party report that is required is the Physical Capital Needs Assessment (PCNA) report if one has not been completed within the last 5 years.
Maximum loan term is the remaining term on the existing mortgage. Can be increased up to 12 years beyond the remaining term of the existing mortgage, but not to exceed the original term. Cannot exceed 75% of the project’s remaining economic life.
The Lesser of:
No. The entire balance of the current replacement for reserve escrow account is transferred to the new HUD/FHA 223(a)(7) loan.
The transaction time from Engagement to close normally takes between 60 and 90 days.
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