Finances repairs, additions and/or improvements (including energy conservation improvements) for Multifamily and Healthcare properties with FHA-insured first mortgages.
Multifamily, Nursing Homes, Assisted Living, Intermediate Care, and Board + Care facilities with existing FHA-insured mortgages.
Single asset, special purpose entity. Either for-profit or non-profit. As this is a second mortgage, the borrower will be the same entity in both the existing first mortgage and the 241(a) loan.
MAXIMUM LOAN AMOUNT
The lesser of:
- Amount requested in the application;
- 90% of the value of the HUD-estimated cost of improvements;
- 90% of the estimated replacement cost;
- An amount which, when added to the outstanding balance of the existing FHA-insured mortgage, does not exceed 85% LTV (for non-profit mortgagors) or 80% LTV (all other eligible entities); and
- An amount based of total indebtedness.
Multifamily – 1.11x
Healthcare – 1.45x
TERM & AMORTIZATION
Equal to the remaining term of the FHA-insured first mortgage, not less than 10 years.
Fixed-rate, subject to market conditions at the time of rate lock.
MORTGAGE INSURANCE PREMIUM
- Market Rate – 0.95%
- Affordable Properties – 0.35%
- Broadly Affordable/Energy Efficient – 0.25%
- Without LIHTC – 0.72%
- With LIHTC – 0.45%
Fully assumable, subject to HUD approval.
Negotiable. Typically, 10% year one, declining 1% per year.
THIRD PARTY REPORTS
Appraisal, Phase I ESA and market report. Other reports as needed.
The supplemental loan will not require a second replacement reserve but will require a reanalysis of the existing reserve on the FHA-insured first mortgage. This new analysis will determine needs for the existing project and any new additions related to the supplemental loan.
Initial and monthly deposits required based on long-term physical needs of property.
HUD APPLICATION FEE
$3 per $1,000 of requested loan amount.
HUD INSPECTION FEE
0.5% of the loan amount.
This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.