Nov 21, 2018
What is Builder and Sponsor’s Profit and Risk Allowance (BSPRA)?
For HUD 221(d)(4) loans, Builder and Sponsor’s Profit and Risk Allowance (BSPRA) consists of an allowance of 10% of the estimated project cost. Since the mortgage calculation contains no builder profit, this allowance is used as a credit to the builder.
Nov 21, 2018
What are Basis Points?
Basis points are a common measurement to denote changes in interest rates and other financial percentages. 1% change = 100 basis points, and 0.01% = 1 basis point.