• Apartment
• New Construction
• Substantial Rehabilitation

  • 40 Year Fixed Rate Loan
  • No Personal Liability
  • Fully Assumable
  • Rate Locked Prior to Construction

Maximum Loan is the Lesser of:

1. 90% Debt Service Mortgage

   • The maximum loan that can be supported by 90% of the projected Net Operating Income

2. 90% Replacement Cost  - Defined as the Sum of:

   • Allowable Construction and Soft Cost

   • 10% of Allowable Cost (BSPRA)

   • Land Value

3. FHA per unit Statutory Limit

Non-mortgagable Cost

• Operating Deficit (LOC or Cash)
• Offsite or Unusual Site Development Cost (LOC or Cash)
• 2% Working Capital (LOC or Cash) Contractors Profit if BSPRA is used

*Typical Processing Steps

1. Pre-app meeting with FHA
2. "SAMA" Application Submitted - (FHA's Site Appraisal & Market Analysis) Rents & Land Value Established
3. Firm Application Submitted will include:
   • All Engineering
   • Full Set of Plans and Specs
   • Contractors Construction Cost
   • Credit information on all Sponsors/Mortgagor
   • Verified working capital sufficient to meet all closing obligations including letters of credit

* Many Field Offices now offer Fast Track that guarantees 90 day turnaround, which may follow different processing steps than described above.

Download our Sample Spreadsheets here:

Microsoft Word Format
(107.0 KB)

Word Perfect Format
(40.56 KB)

                      Copyright © 2000-2005 Highland Mortgage Company
                      Last modified: 06/15/2005
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