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17.3.1 Loan Parameters

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

  • A. An equity take out from a refinancing loan is not permitted for Cooperative housing projects.

B. In accordance with Chapter 3, Section 3.7.18, HUD will insure a mortgage for a maximum term of 35 years or 75% of the remaining economic life of the property, whichever is less. The maximum insurable mortgage amount shall be the lesser of the following parameters as they relate to the criteria in Form HUD-92264-A, “Supplement to Project Analysis”:

  1. Criterion 1: Mortgage or Loan Amount Requested in Application.

  2. Criterion 3: Amount Based on Value or Replacement Cost . The market value of the cooperative valued as a market rate rental project multiplied by a loan ratio of 65%.

  3. Criterion 4: Amount Based on Limitations per Family Unit . Use Section 207 statutory per unit limits, adjusted by the local PC High Cost Percentage for the locality. Follow the outstanding instructions for Criterion 4.

  4. Criterion 5: Amount Based on Debt Service Ratio. A mortgage amount supported by 1.0 debt coverage based on the projected net operating income (NOI) as an existing Cooperative project based on its historic occupancy rate (up to 100%), which is NOI noted on line “5.e”.

  5. Criterion 7 . Criterion 7 is not to be completed since acquisitions are ineligible.

  6. Criterion 10: Amount Based on Existing Indebtedness, Repairs and Loan Closing Charges . Follow outstanding instructions. The cost to refinance includes funding, if applicable, the Initial Funding of the Replacement Reserve and the Initial Deposit to the General Operating Reserve (see Section 17.3.3 below). Equity out is not permitted under Section 223(f) when refinancing Cooperatives, accordingly, the calculation for this criterion stops at line 10.g.

  7. Criterion 11: Amount Based on Deduction of Grants and Gifts and Loans. Line 11.a shall be the cost to refinance plus FHA Mortgageable items taken from Line 10.g. Line 11.b shall be total of grants, gifts and loan intended to offset the cost of mortgageable items. Line 11.c shall be Line 11.a minus Line 11.b.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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