FHA Application Fee: 0.15%, due at application
FHA Commitment Fee: 0.15%, due at issuance of loan commitment
FHA Mortgage Insurance Premium: HUD’s prevailing rate paid at closing and monthly
FHA Inspection Fee: 0.50% at closing
Financing and Placement Fees: prevailing market rates
Expenses: Engagement Fee, third-party reports and out-of-pocket expenses, including
a) Mortgage Reserve: funded in monthly increments up to an amount equal to one year of debt service after five years and two years of debt service after ten years. b) Taxes / Insurance: budgeted under the construction loan and disbursed through normal construction draws. At final endorsement, normal escrows are established and deposits are made monthly thereafter. c) Working Capital Reserve: cash or letter of credit equal to 2% of the loan posted at initial closing. For not-for-profit entities, Allowance for Making Project Operational (“AMPO”) is a use of loan proceeds to be used for working capital. d) Operating Deficit Reserve: determined by HUD.
Payment of prevailing wages is required. Wage rates are determined by Department of Labor.