How Does FHA Mortgage Insurance Premium Affect My Debt Service Cost?
Some borrowers are put off by the FHA mortgage insurance premium. A good way to do an “apples to apples” analysis of different financing options is to compute the mortgage constant for each. The mortgage constant is the annual debt service cost including principal, interest and mortgage insurance. FHA commercial mortgages have a longer amortization […]
Tax Exempt Short Bonds + 4% Tax Credits + FHA Mortgage Insurance = A Sweet Deal for Your Affordable Rental Housing Project
A new municipal bond structure has significantly improved the efficiency of coupling FHA-insured construction loans with tax exempt bonds. Because federal law links 4% low income housing tax credits (“LIHTC”) to the award of municipal bond allocation (“bond cap”), FHA-insured transactions can now access 4% tax credits without assuming the high issuance and debt service […]
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