Acquisition Construction Financing

FHA SECTION 202/223(f)

Financing for the Prepayment of Section 202 Direct Loans.


  • Maximum loan to value is 90%; maximum term is 35 years with full amortization.
  • Loan is pre-payable, assumable and non-recourse.
  • Requires a 1.11x debt service coverage based on a maximum of 95% occupancy.
  • Underwriting based on Section 8 contract rents even if higher than market rents.
  • Loans funded with tax-exempt bonds or Government National Mortgage Association (GNMA) Securities.
  • Repairs may not cost in excess of 15% of the project’s replacement cost or involve replacement of 2 or more major building components.
  • Costs of repairs and reserve fund for building/equipment replacement can be included in the loan.
  • Loan can include a Development Fee equal to 15% of repairs.


0.3% Application Fee to FHA
1.0% Mortgage Insurance Premium (up-front at closing)
1.0% Inspection Fee on Repair Amount
2.0% Maximum Financing Fee
1.5% Maximum Placement Fee
2.0% Costs of Issuance for Tax-Exempt Bond Transactions

An annual 0.45% Mortgage Insurance Premium payable to FHA is required. For Multifamily Accelerated Processing (MAP), additional fees will be required for third party appraisals, environmental reports and building inspection and engineering reports which may be paid from existing reserve funds.


  • Full escrows required for property insurance, real estate taxes, and FHA mortgage insurance premium.
  • Replacement reserve escrow for on-going replacement of depreciable items is required for the term of the loan.

Other Financing Programs

Lender/Investors:  investors tag.jpg Have Money to Place

Borrowers Looking for Capitalapply now.gif

Email us your a copy of your Loan Request or Business Plan



CFO Capital Partners, its affiliates and principals are not a United States Securities Dealer nor Broker nor US Investment Adviser.  CFO Capital Partners, its affiliates and principals is a  Consulting Firm and in some instances a Private Investor. All Emails and related correspondence are never to be considered a solicitation for any purpose in any form or content. We do not intend to, nor do we, provide investment advice or counsel to any particular transaction. You, as the Recipient, hereby acknowledges this warning and disclaimer. If acknowledgment is not accepted, Recipients must return the document copies, in their original condition, to the Sender via email or postal services immediately