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).
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.
Loan amount less than 75% of appraised replacement cost/value
Maximum loan based on per unit maximums and loan-to-value as noted above
Debt Service Coverage
Minimum of 1.15 to 1
30 year fixed rate
Escrows for property taxes and hazard insurance, reserve for replacement
Determined by market at the time of bond sale
Management, builder and developer fees are limited
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)