||A maximum term of 35 Years or 75% of the remaining economic life, fully amortizing
||Loan amount of the refinance or purchase of existing properties is the lesser of:
- 80% (85% non-profit) of market value;
- A mortgage amount supported by a DSC of 1.45x;
- 100% of the transaction cost for a refinance, (85% of the transaction cost for a purchase transaction). Recognizable transaction costs include repairs, initial replacement reserves, third party reports, closing costs, along with eligible existing indebtedness or purchase price.
||The facility must have been completed or substantially rehabilitated for at least three years prior to the date of the application. Projects with additions completed less than three years previous are eligible as long as the addition was not larger than the original project size and number of beds.
||Single Asset Entity (for profit or non-profit)
|Tax and Insurance Escrows
||Monthly deposits required
||Maximum 20% of gross floor area and maximum 20% of effective gross income
||Appraisal, Property Capital Needs Assessment (PCNA) and Phase I
||Negotiable. Generally two-year lockout with a 10% to 1% declining pre-payment penalty. Other pre-payment options are available.
||Subject to Arbor and HUD approval and payment of assumption fee
|Good Faith Deposit
||Negotiable based on project type
||Yes – sufficient to cover Arbor’s expenses and third-party report costs
|HUD Application Fee
||Non-refundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD with the firm commitment submission package.
|HUD Inspection Fee
||$30 per unit when repairs are less than $3,000 per unit. 1% of the cost of the repairs otherwise.
||Borrower pays Arbor’s Counsel Fee and miscellaneous closing costs.
||Repairs cannot exceed 15% of appraised value or replacement of 2 or more major building systems.
||Not applicable to this program
|HUD Mortgage Insurance Premium
1% MIP upfront at closing. Annual MIP:
- 0.65% for Market Rate Properties
- 0.45% for Affordable Properties