American Trust Corporation

FHA Insurance Program
Apartment Refinance/Acquisition
Section 223(f)

Purpose: Provides mortgage insurance for existing apartment projects, to facilitate either the refinancing or sale of projects at least three years old. Available for profit motivated or non-profit borrowers.

Eligible Borrower: Profit motivated, non-profit motivated and public owners are eligible.

Maximum Term: 35 years, not to exceed 75% of remaining economic life.

Maximum Loan:
Refinancing: The lesser of:
(1) the amount that can be supported by 85% of net operating income;
(2) 85% of value; or
(3) the greater of 70% of value or 100% of the total cost of refinancing the existing indebtedness

Acquisition: The lesser of:
(1) 85% of acquisition cost (i.e., total cost to close);
(2) 85% of value; or
(3) the amount that can be supported by 85% of stabilized net operating income. (Potentially, a surplus cash note for 7.5% of the acquisition cost can be utilized, thereby increasing the amount financed to 92.5%.)

Personal Liability: None.

FHA Application Fees: 0.3% of the loan amount.

Mortgage Insurance Premium: 1% for the first year (payable at closing) and thereafter .5% of the outstanding loan amount.

Secondary Financing: Surplus cash notes permitted, up to 7.5% of the project’s value.

Repairs/Replacements: Funds for repairs, deferred maintenance and capital improvements for up to 15% of value of $6,500 per unit (may be adjusted for high cost areas) can be included in the loan amount, subject to the 85% loan to value limitations.

Funding: Qualifies for government guaranteed mortgage-backed securities or direct placement or to credit enhance tax-exempt bonds.

Prepayment: Typically either: (1) closed for 10 years then open to prepayment at par, or (11) closed for five years then open to prepayment at 105 in year six, declining 1% per year.

Interest Rate: Subject to market conditions.

Territory: Nationwide.

The program has the following additional parameters:
• Properties at least three years old (i.e., Certificates of Occupancy outstanding for at least three years on the date of application);
• Davis Bacon prevailing wages requirements do not apply;
• No cost certification (as applicable to the 221 (d) programs);
• A replacement reserve deposit will be required at closing. The deposit can be capitalized in the mortgage loan and typically runs from $350 to $1,000 per unit;
• 223 (f) processing usually takes from 3 to 8 months. Where “Fast Track” Processing is available, an application can be processed in a few as 60-90 days from submission of a complete package.

In its pre-qualifying review, American Trust Corporation will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the pre-qualifying estimates. A pre-qualifying estimate is not a commitment to make a loan.

Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing

Origination Fee: 1%

What We Do

Lending Programs

Property Types

Application Forms

Global Financing Solutions

Short Term Commercial

Float to Fixed

Small Loan Programs

Hard Money Loans

Credit Tenant Financing

Mezzanine

Multifamily

Office

Health Care Financing

Hotel & Resort Financing

Auto, Marine & Equipment Financing

Mobile Home Park

FHA & Fannie Mae Products

Self Storage

Retail

Industrial

SBA Programs

Factoring and Business Finance

Small and Rural Hospital Finance

Privacy Policy


	FHA Insurance Program Apartment Refinance/Acquisition Section 223(f) Purpose: Provides mortgage insurance for existing apartment projects, to facilitate either the refinancing or sale of projects at least three years old. Available for profit motivated or non-profit borrowers. Eligible Borrower: Profit motivated, non-profit motivated and public owners are eligible. Maximum Term: 35 years, not to exceed 75% of remaining economic life. Maximum Loan: Refinancing: The lesser of: (1) the amount that can be supported by 85% of net operating income; (2) 85% of value; or (3) the greater of 70% of value or 100% of the total cost of refinancing the existing indebtedness Acquisition: The lesser of: (1) 85% of acquisition cost (i.e., total cost to close); (2) 85% of value; or (3) the amount that can be supported by 85% of stabilized net operating income. (Potentially, a surplus cash note for 7.5% of the acquisition cost can be utilized, thereby increasing the amount financed to 92.5%.) Personal Liability: None. FHA Application Fees: 0.3% of the loan amount. Mortgage Insurance Premium: 1% for the first year (payable at closing) and thereafter .5% of the outstanding loan amount. Secondary Financing: Surplus cash notes permitted, up to 7.5% of the project’s value. Repairs/Replacements: Funds for repairs, deferred maintenance and capital improvements for up to 15% of value of $6,500 per unit (may be adjusted for high cost areas) can be included in the loan amount, subject to the 85% loan to value limitations. Funding: Qualifies for government guaranteed mortgage-backed securities or direct placement or to credit enhance tax-exempt bonds. Prepayment: Typically either: (1) closed for 10 years then open to prepayment at par, or (11) closed for five years then open to prepayment at 105 in year six, declining 1% per year. Interest Rate: Subject to market conditions. Territory: Nationwide. The program has the following additional parameters: • Properties at least three years old (i.e., Certificates of Occupancy outstanding for at least three years on the date of application); • Davis Bacon prevailing wages requirements do not apply; • No cost certification (as applicable to the 221 (d) programs); • A replacement reserve deposit will be required at closing. The deposit can be capitalized in the mortgage loan and typically runs from $350 to $1,000 per unit; • 223 (f) processing usually takes from 3 to 8 months. Where “Fast Track” Processing is available, an application can be processed in a few as 60-90 days from submission of a complete package. In its pre-qualifying review, American Trust Corporation will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the pre-qualifying estimates. A pre-qualifying estimate is not a commitment to make a loan. Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing Origination Fee: 1%
		What We Do Lending Programs Property Types Application Forms

		Global Financing Solutions Short Term Commercial Float to Fixed Small Loan Programs Hard Money Loans Credit Tenant Financing Mezzanine Multifamily Office Health Care Financing Hotel & Resort Financing Auto, Marine & Equipment Financing Mobile Home Park FHA & Fannie Mae Products Self Storage Retail Industrial SBA Programs Factoring and Business Finance Small and Rural Hospital Finance


Privacy Policy