Sec 221 (d)(4)
I believe this is the FHA product that provides mortgage insurance for the construction of multi family projects, not the rehab, I think that’s (d)(3). Feel free to correct me if I’m wrong.
I was told that there is actually a 5% contractors credit on the backend somehow so it actually makes the LTV 94-95%.
Am I understanding this correctly? Maybe someone can clear this up a little for me. Thanks in advance for the help.
Do a search for ‘patty porter’ and send her a message. She should be able to help you. You might try ‘ezloanz’ as well he is very knowledgable about FHA. Hope this helps.
The 221d is a new construction and/or rehab for MFH commercial properties—in some circumstances, up to an 8% developer fee is allowed (usually in low income apartment development projects), bringing your max. LTV to 98%.
Regards,
Scott Miller
Maximum Loan: Generally, the lesser of:
(1) 90% of replacement cost or rehabilitation and structure cost
(2) The amount of debt that can be serviced by 90% of net income
(3) Statutory per unit limits
(4) 100% of mortgagable costs less grants, public loans and tax credits
Builder/Developer’s Profit: Builder and sponsor’s profit and risk allowance equal to 10% of all costs other than land.