Is debt used for developer fees mortgageable?
Developer’s Fees are not eligible mortgageable costs (Please reference Handbook 4232.1 REV-1 Section II, Production, Chapter 3.3). However, costs associated with development of the project are allowed to be repaid through a surplus cash note. Justification to support what is included in the developer’s fee, including evidence that the work was specifically related to the project, is required if a surplus cash note is used. . -- Aug-17