B. The following is an example of a sample transaction – the data shown is for…
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States
| Section 223(a)(7)- Project Analysis - Mortgage Sizingand Sources and Use | Section 223(a)(7)- Project Analysis - Mortgage Sizingand Sources and Use | Section 223(a)(7)- Project Analysis - Mortgage Sizingand Sources and Use | Section 223(a)(7)- Project Analysis - Mortgage Sizingand Sources and Use | s Worksheet | s Worksheet | Page 1 | Page 1 | Page 1 | ||||
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| To complete the worksheet,fill in onlythe blue cells. | ||||||||||||
| Project Name | Oak Tree Manor Apartments | Project # | 123-45678 | |||||||||
| Project City, ST | Springfield,MO | Name of Mortgagor | Oak Tree Manor LP | |||||||||
| Lender | FHA Capital Mortgage,Inc. | |||||||||||
| I. | Lowest Mortgage Amount of criteria 4,800,000 $ |
Requested Amount = Lower MtgbyChoi | ce | |||||||||
| 1. Mortgage or Loan Amount Requested in Application |
This is a manual input usually equal to the lowest of the three amounts below: | 4,800,000 $ |
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| Difference vs. request | ||||||||||||
| 2. Original Principal Amount of Mortgage(s) to be refinanced |
$200,000 | 5,000,000 $ |
M iddle | |||||||||
| 5. Criterion 5. Amount Based on Debt Service Ratio (see calcu |
lation 5. details below) $1,255,700 |
6,055,700 $ Highest 4,801,500 $ Lowest |
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| 6,055,700 $ |
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| 10. Criterion 10. Amount Based on the cost of refinancing (see | calculation 10. details below) $1,500 |
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| 4,801,500 $ |
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| II. | Total Requirements for Settlement | |||||||||||
| Uses- Mortgageable Amounts | ||||||||||||
| Current Unpaid Principal Balance of Existing Debt Total Prepayment Penalty Costs HUD approved debt to refinance via the A7 Critical repairs Non critical repairs Initial deposit to Reserve for Replacements |
4,570,638 $ 137,119 $ - $ 25,000 $ 10,000 $ 12,000 $ |
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| Fees Financing fees (excluding Title&Rec., Leg&Org.)* Title & Recording Legal & organizational Other permitted costs (a). Total Mortgageable Uses of Cash |
- $ 112,800 $ 19,000 $ 4,000 $ - $ 4,890,557 $ |
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| Sources | ||||||||||||
| FHA Mortgage Amount | 4,800,000 $ |
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| Discount Lender paid prepayment penalty c Grants & other sources to pay costs Purchased and Transferred Reserve (b). Total Sources of Cash |
- $ Note: net proceeds to pay borrower costs: osts 48,000 $ 4,848,000 $ + de min lndr R4R de - $ s 41,000 $ 4,889,000 $ |
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| Cash Requirement Calculation | ||||||||||||
| (c)=(a)-(b). Mortgageable Uses of c (d). Non-mortgageable: Assurance (e)=(c)+(d). Total Cash required |
ash less Sources of Completion Escro |
1,557 $ w 2,000 $ 3,557 $ |
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| **III. ** | Payback calculations & change in intere* | st rate and maturity | date | |||||||||
| Refi'd Debt*** | P&I/ $26,443 |
Transaction costs** $272,919 Divided by Annual P&I savings $53,565 |
Fin. Fees, pre-pmt penalties, T&R, |
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| New Mortgage | $21,979 | Equals Payback Period (in years) | 5.1 | and legal fees. | ||||||||
| P&I savings (monthly) | $4,464 | New 223(a)(7) interest rate: | 4.250% | |||||||||
| Old interest rate: | 5.375% | |||||||||||
| Annual P&I savings * Paybackperiod for is information only;it is not |
Interest Rate reduction: Maturity extension (yrs.): aprogram requirement. ** Includes incremental costs to thirdparties not incurred o $53,565 |
1.125% 7.3 r incurrable under |
existingoperation. | |||||||||
| Chapter 18 - Section 223(a)(7)Project Analysis example Example derived from: Section 223a7 Mortgage Sizin |
gand Sources and Us | es worksheet 9-24-15.xlsx | ||||||||||
MAP Guide, March 2021 Go to beginning of Chapter 18
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Chapter 18 Page 18-9
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Chapter 18 Section 223(a)(7) 18.4 Processing
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