Risk Sharing Program
Type of Program: HUD insured permanent financing units of multifamily
rental property through a partnership between Montana Board of Housing (MBOH) and Department of Housing and Urban Development (HUD).
Eligible Applicants: For-profit, non-profit, and governmental entities.
Types of Projects: 5 - 36 units meeting affordability guidelines. An exception may be granted by the Board if the project would provide a documented public purpose (ie: preservation of existing low income housing, meeting a community identified need etc). New construction and acquisition with substantial rehabilitation. Family, special needs or elderly housing. Must be complete living units.
| Security: | First Mortgage |
| Loan-to-Value: | Loan amount less than 75% of appraised replacement cost/value |
| Loan Amounts: | Maximum loan based on per unit maximums and loan-to-value as noted above |
|
Debt Service Coverage: |
Minimum of 1.15 to 1 |
| Loan Term: | 30 year fixed rate |
|
Reserve Requirements: |
Escrows for property taxes and hazard insurance, reserve for replacement |
| Loan Rate: | Determined by market at the time of bond sale |
| Fee Limitations: | Management, builder and developer fees are limited |
| MBOH Fees: | Total of 1% of mortgage loan amount, including origination fees |
| Mortgage Insurance Premium: | .5% of outstanding mortgage amount annually (.45% to HUD, .05% to MBOH) |
