A. Single-Family Project Financial Feasibility Analysis Process

1. Determine who is your target market based on:

income affordability to determine maximum mortgage amount borrower can support and maximum cash required to close and house type

2. Calculate total development costs

3. Analyze as-built/after-rehab-appraised value and establish sale price based on target buyer affordability, house type and improvements.

4. Develop schedule of permanent sources:

home sales proceeds subordinate mortgages

5. What if there is a Gap?

explore options to cut costs without sacrificing quality. explore options to increase revenues without sacrificing affordability and not meeting market demands. explore options to increase bank financing.

6. Obtain gap funds from public and private sources.

7. What if there is still a gap? Review steps 1-6 and re-consider feasibility of project.

Next: A1. Project Development Matrix: Single-Family

OHIO CAPITAL CORPORATION FOR HOUSING