FHA insured Mobile Home Park new construction or Substantial rehab program, providing long term, fixed rate, fully assumable non-recourse financing. Loan provides for both construction and permanent financing in one commitment without occupancy requirements.

ELIGIBLE PROJECTS

• Market rate Mobile Home Park Lot Rental complexes
• New construction or Substantial Rehabilitation
• Construction work may be started prior to closing with approval of HUD
• Davis Bacon labor standards and prevailing wage requirement apply to construction

MORTGAGE TERMS

• Fixed rate, level amortization, non-recourse, fully assumable and 100% insured by FHA
• Term - up to 40 years permanent loan plus construction period
• Mortgage amount determined by lesser of:
  • statutory limits
  • loan amount supported by 90% of net operating income (1.11 debt service coverage) for profit motivated borrowers
  • 90% of project costs
• Interest Rates:
  • Taxable low interest GNMA Mortgage Backed Securities
  • Tax exempt bonds

COSTS AND FEES

• Application Fees:
  • 0.1% of mortgage for initial application
  • 0.2% of mortgage for a Firm Commitment application (total of .3%)
• Paid at Closing:
  • .5% Construction Inspection fee paid to HUD
  • HUD permits a 2% Financing Fee
  • HUD permits a 1.5% Placement Fee
  • Discounts may be included in mortgage proceeds for GNMA MBS or private financing
  • .50% MIP per year of estimated construction period
  • 2.0% Working Capital Letter of Credit during construction period
  • Operating deficit escrow may be required
  • Assurance of completion LOC or payment and performance bond (based on construction contract)
• Annual Fees:
  • 0.5% MIP (payable monthly)
  • 0.25% to 0.50% annual GNMA Guarantee Fee/Servicing Fee

PREPAYMENT PENALTIES/LOCKOUTS

• No yield maintenance required
• Prepayment lockout, penalties are negotiated between investor and borrower at the time of interest rate lock