Fixed rate, level amortization,
non-recourse, fully assumable, and 100% insured by FHA.
Term - The remaining term of the existing mortgage plus 12 years
not to exceed 40 years
Refinancing determined by lesser of:
* 90% of net operating income (1.11 debt service coverage)
* The original mortgage amount
* Unpaid balance of debt, repairs (if any) and loan closing
costs
- Interest Rates (quoted based on market):
* Low interest GNMA Mortgage Backed Securities or whole loans
FINANCING COSTS (based on loan amount)
* 0.3% for a Firm Commitment to insure a mortgage. This fee
is an FHA exam fee and is non-refundable and paid to HUD (Half of
this fee may be refunded after the closing.)
* Applicable GNMA discount fees or similar fees charged by
private programs
* .5% for the first year’s Mortgage Insurance Premium (MIP)
payable to HUD
* 100% of the cost of repairs (mortgage proceeds) must be set
aside in an escrow account plus a 10% letter of credit or cash for
Assurance of Completion of Repairs
* Financing fee
* 0.5% MIP
* 0.25% to 0.50% Annual GNMA Guarantee / Servicing Fees
(Included in the Interest Rate Quote)
PREPAYMENT PENALTIES/LOCKOUTS
- No yield maintenance required
- Prepayment lockout or prepayment penalties may be required and
are negotiated between investor and borrower at the time of interest
rate lock
