FHA makes capital advances for construction of rental housing for very low income elderly (202) or low income
persons with disabilities (811).
The 202 feeds advanced capital into most FHA Insured loans. Exceptions are hospital loans and the 241(f) program.
Programs which do qualify for advanced capital payments are programs designated as 232 (health care), 223 (f)
(Purchase/Refinance), 223a7 (Refinance), 241 (Improvements) and miscellaneous others.
FHA Section 202 | FHA Section 811 Loan Programs
Location:
Nationwide ()
Loan Terms:
Construction: Up to 2 years
Permenant Loan: Up to 40 years
Loan Amount:
No Minimum / No Maximum
Income:
Income verification u/w on Section 8 rents
Recourse:
None except standard carve-outs
Debt Coverage:
1:11; 90% Loan-to-development
FHA Fee:
HUD/FHA application Fee, $3/$1000 of mtg. amt.
Borrower:
Must be Single –Asset entity
Assumable:
Yes, subject to Lender and HUD approval
Security:
Latent Defects: 2.50% of construction contract;
Funds are released 15 months after completion
Have Questions? Want to get Started? Please Contact Us:
Capital Line Commerical Financing Contact Form
Capital Line Funding |(858)
452-2845 | License #00808579
