D. The following is an example of a sample transaction – the data shown is for…

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Section 223(a)(7) - Project Analysis - Mortgage Sizing and Sources and Uses Worksheet Page 3 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. V. Condensed summary of Sources and Uses Sources (summary) Uses (summary) New Section 223(a)(7) mortgage $ 4,800,000 Unpaid Principal Balance of existing Lender payment of all or a portion of mortgage $ 4,570,638 prepayment penalty $ 48,000 Initial deposit to Reserve for LOC - Borrower funding of non-mortgageable Replacements $ 12,000 Assurance of Completion escrow $ 2,000 Non-critical repairs $ 10,000 Prepayment Penalty (entire amount due) $ 137,119 Assurance of completion escrow (non- mortgageable) $ 2,000 Subtotal of selected Sources $ 4,850,000 Subtotal of selected Sources $ 4,731,757 All other Sources (includes transferred reserves, All other Uses (includes fin. fees & costs, contributed cash & LOCs, + other trade. prem. $ 40,557 other refi'd debt, repairs, discnts. & misc.) $ 158,800 Total Sources $ 4,890,557 Total Uses $ 4,890,557 V. Financing Charge details for Cost Based Criterion 10. mortgage and the Actual mortgage Note that the actual mortgage may be equal to the Cost Based Criterion Mortgage if this is the maximum permitted mortgage): Fees for the Criterion 10 mortgage of $ 4,801,500 Fees based on the actual mortgage amount of $ 4,800,000 ** Financing Charges based on fees shown as %s of the * Financing Charges based on % above and certain "knowns" mortgage amount listed in Section II, and certain "knowns" per cost- based mortgage calc't'd. per Criterion 10. above. per actual mortgage FHA MIP $ 21,607 FHA MIP $ 21,600 FHA exam $ 7,202 FHA exam $ 7,200 Financing Fee $ 24,008 Financing fees Financing Fee $ 24,000 Financing fees Perm Placement fee $ 60,019 Subtotal: Perm Placement fee $ 60,000 Subtotal: Allowance extra $ - $ 112,835 Allowance extra $ - $ 112,800 Discount $ - Discount $ - Title Recording HUD $ 19,000 Title Recording HUD $ 19,000 Legal & org $ 4,000 Legal & org $ 4,000 Initial dep to reserve $ 12,000 Initial dep to reserve $ 12,000 Total $ 147,835 Total $ 147,800 VI. Details of prepayment penalty and sources of payment $ % of new actual mtg. amt. Total Prepayment Costs to be paid $137,119 2.857% Total prepayment pnlty to be paid from mortgage proce $89,119 1.857% Total prepayment pnlty to be paid by lender $48,000 1.000% Any de minimus lender deposit into the Res. For Repl. $0 0.000% Chapter 18 - Section 223(a)(7) Project Analysis example Example derived from: Section 223a7 Mortgage Sizing and Sources and Uses worksheet 9-24-15.xlsx