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GERSHMAN MORTGAGE FINANCES OVER $7.5 MILLION UNDER NEW HUD GUIDELINES
Loan is one of the first refinances of a Section 202 loan in the country

ST. LOUIS, September 13, 2005—Gershman Mortgage, one of the largest mortgage lenders in St. Louis, closed, in July, one of the first refinances in the country under new revisions to the underwriting requirements of Section 202 of the National Housing Act. The loan provided over $7.5 million to refinance Jackson Park Place Apartments, an apartment complex for seniors. Under HUD’s previous guidelines, the apartments could not be refinanced. A change to the regulations issued in November allowed the project to be refinanced and take advantage of current low interest rates which resulted in lower monthly mortgage payments.

“We were delighted to provide Murphy Senior Living, Inc. with a new mortgage for Jackson Park Place that lowered the interest rate on their loan from 9.25% to 5.25% and enabled the project to complete more than $116,000 in repairs; fund additional project reserves of $245,000; and increase annual payments to replace reserves to cover future projects,” said Jack Sheredano, senior vice president at Gershman Mortgage. “We are pleased that the savings are being used to add personnel for maintenance, security, and social staffing to assist the elderly residents as they age in place.”

Gershman provided $7,650,000 to refinance Jackson Park Place Apartments. The 141-unit apartment complex is located at 1220 Warren Avenue in St. Louis, MO. The loan is financed with GNMA mortgage backed securities, and insured by the FHA under Section 223 (f) of the National Housing Act. The project was originally financed using a HUD Section 202 loan.

For more than 50 years, Gershman has provided financing for residential real estate in the St. Louis region, and for commercial multi-family projects nationwide.
Gershman is the oldest independent mortgage company in St. Louis, and one of the largest in Missouri. Gershman is an area leader in FHA/VA and conventional single-family home loans, having financed over 75,000 loans in the St. Louis area alone. Nationally, Gershman services over half a billion dollars in loans for multi-family and healthcare facilities. Gershman provides all types of financing for apartments, nursing homes, assisted living facilities, and hospitals. Gershman Mortgage is one of only 63 lenders in the country approved for MAP (Multi-family Accelerated Processing) for apartments, assisted living and nursing homes.

Gershman Mortgage’s website is located at www.gershman.com. The site’s commercial side outlines the products and programs available to commercial borrowers. It provides links to important resources and includes a list of documents necessary for reviewing loan requests. In addition, the site highlights projects and facilities financed by Gershman Mortgage.

Gershman Mortgage has offices in Clayton, St. Peters, Fairview Heights, and Southern IL and can be found on the web at www.gershman.com. Gershman’s Clayton office is located at 7 North Bemiston. The main phone number is (314) 889-0600 or 1-800-GERSHMAN.