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Historical Production

Historical Production. 221(d)(4) 1960s - 2007 9,099 loans 1,107,865 units $42.6 billion insurance written $15.9 billion insurance in force. Current production. 221(d)(4) – FY 2006 92 loans 14,996 units $885 million insurance written.

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Historical Production

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  1. Historical Production • 221(d)(4) 1960s - 2007 9,099 loans 1,107,865 units $42.6 billion insurance written $15.9 billion insurance in force

  2. Current production • 221(d)(4) – FY 2006 92 loans 14,996 units $885 million insurance written

  3. 221(D)(4) PROGRAM BASICS • NEW CONSTRUCTION AND SUBSTANTIAL REHABILIATION • INSURES BOTH CONSTRUCTION AND PERMANENT LOANS • 40 YEAR MORTGAGE TERM • FINANCED WITH GNMA MORTGAGED-BACKED SECURITIES

  4. Builder/Sponsor Profit and Risk Allowance (BSPRA) . History . Identity of interest with General Contractor . 10% of all costs except land . Effect on borrower equity

  5. Mortgage Limitations • 90% of Replacement Cost(New Construction)) • 90% of Rehab cost plus As-Is Value(Sub Rehab) • Debt Service Limit(90% of Net Income) • Statutory Per Unit Limits

  6. Cost Certifcation . History . Borrower in all cases . General Contractor in identity of interest (e.g., BSPRA) cases

  7. Ground Leases • Term - 99 year renewable - 10 years beyond maturity date • Limit on Value • FHA right to purchase Fee title • Limit on Ground Rent

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