Refinance of an Existing HUD-Insured Mortgage
Refinance of an Existing HUD-Insured Mortgage.
All existing HUD insured loans.
Single asset and single purpose entity, either for-profit or non-profit.
The lesser of:
a) The original principal amount of the existing insured mortgage.
b) Transaction costs.
c) 1.111 DSCR (1.053 for non-profit).
*No equity takeout is permitted.
**Other than the above constraints, there are no minimum or maximum loan sizes.
Current remaining term or in some cases with HUD approval can be extended to original mortgage term.
Fixed rate determined by market conditions at the time of rate lock.
0.50% payable at closing, 0.50% annually.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
PCNA required.
Escrows for taxes, insurance and mortgage insurance premium continue to be required.
Initial (net of current balance) and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 10% of the estimated cost of repairs.
0.15% of requested loan amount for Section 223(a)7
There is no HUD inspection fee even if there are deferred non-critical repairs.
Typically, 0.5% of loan amount, refunded at closing.
Refinance of an Existing HUD-Insured Mortgage.
All existing HUD insured loans.
Single asset and single purpose entity, either for-profit or non-profit.
The lesser of:
a) The original principal amount of the existing insured mortgage.
b) Transaction costs.
c) 1.111 DSCR (1.053 for non-profit).
*No equity takeout is permitted.
**Other than the above constraints, there are no minimum or maximum loan sizes.
Current remaining term or in some cases with HUD approval can be extended to original mortgage term.
Fixed rate determined by market conditions at the time of rate lock.
0.50% payable at closing, 0.50% annually.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
PCNA required.
Escrows for taxes, insurance and mortgage insurance premium continue to be required.
Initial (net of current balance) and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 10% of the estimated cost of repairs.
0.15% of requested loan amount for Section 223(a)7
There is no HUD inspection fee even if there are deferred non-critical repairs.
Typically, 0.5% of loan amount, refunded at closing.
