Acquisition Construction Financing


Supplemental financing for the improvements or additions to a multifamily project or healthcare /senior housing project already financed by an FHA insured project loan.


  • Used as a supplemental financing without prepayment of the existing FHA insured loan.
  • Maximum loan to value is 90% of the FHA estimate of the cost of improvements or addition. The term can not be longer than the remaining term of the existing FHA insured loan.
  • Loan is pre-payable, assumable and non-recourse.
  • Requires a 1.11x debt service coverage of the debt service of the combined first and second insured loans.
  • Underwriting based on underwriting standards of existing FHA insured loan program.
  • Loans funded with tax-exempt bonds or Government National Mortgage Association (GNMA) Securities.


0.3% Application Fee to FHA
0.8% Mortgage Insurance Premium for multifamily projects; .45% for low-income housing tax-credit transactions.
0.57% Mortgage Insurance Premium for healthcare/senior housing; .45% for deals involving low income housing tax-credits.
0.5% Inspection Fee
2.00% Maximum Financing Fee
1.50% Maximum Placement Fee
2.00% Costs of Issuance for Bond Transactions

An annual 0.8% Mortgage Insurance Premium (.57% for healthcare deals and .45% for all deals with low income housing tax-credits) payable to FHA is required. Additional fees may be required for environmental reports and appraisals as part of the loan application process.


  • 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.
  • Working capital deposits or operating deficit escrows are generally not required.

Other Financing Programs

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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