| Type of Program: |
FHA insured permanent financing units of multifamily rental property through a partnership between Montana Board of Housing (MBOH) and Department of Housing and Urban Development (HUD) |
| Eligible Applicants: |
For-profit, non-profit, and governmental entities. |
| Types of Projects: |
5 - 36 units meeting affordability guidelines. An exception may be granted by the Board if the project would provide a documented public purpose (ie: preservation of existing low income housing, meeting a community identified need etc). New construction and acquisition with substantial rehabilitation. Family, special needs or elderly housing. Must be complete living units. |
| Security: |
First Mortgage. |
| Loan-to-Value: |
Loan amount less than 75% of appraised replacement cost/value. |
| Loan Amounts: |
Maximum loan based on per unit maximums and loan-to-value as noted above. |
| Debt Service Coverage: |
Minimum of 1.15 to 1. |
| Loan Term: |
30 year fixed rate. |
| Reserve Requirements: |
Escrows for property taxes and hazard insurance, reserve for replacement. |
| Loan Rate: |
Determined by market at the time of bond sale. |
| Fee Limitations: |
Management, builder and developer fees are limited. |
| MBOH Fees: |
Total of 1% of mortgage loan amount, including origination fees. |
| Mortgage Insurance Premium: |
.5% of outstanding mortgage amount annually (.45% to HUD, .05% to MBOH). |
