HUD fha-223 Refinance fha Multifamily

HUD FHA 223(a)(7)

Refinance of Existing HUD Apartment Loan or Healthcare Loan Overview

HUD FHA 223(a)(7) multifamily mortgages are available for the refinancing of existing HUD FHA insured multifamily loans and healthcare loans under Section 223(f) and Section 232. Streamlined processing results in quicker closings with fewer fees.

Streamlined processing
Fewer fees and lower overall cost
Extend original term of loan
Reduce current interest rate

Finance up to 100% of eligible costs
Fast closings - no new appraisal, market study or environmental required
Close in as few as 60 days


HUD FHA 223(a)(7) Multifamily Loan Program Guidelines

Eligible Properties

Multifamily and Healthcare properties with current FHA insured loans.

Eligible Locations

Nationwide

Maximum Loan Size

The Lesser of:
Original principal amount of existing insured mortgage;
DSC of 1.11x (1.05x for non-profit borrowers);
100% of eligible transaction costs, including existing indebtedness, repairs, fees, third party costs and initial reserve deposit.

Maximum Term

Up to 12 years beyond the remaining term of the existing mortgage, but not to exceed the original term.

Guarantee

Non-recourse.

Minimum DSCR

1.17. 1.15 for affordable properties

Minimum Occupancy

Property must demonstrate a pattern of stable occupancy for 6-Months prior to application and maintained until closing.

Interest Only

N/A.

Prepayment Penalty

Negotiable - typically a two-year lock out followed by a step down premium (e.g. 8,7,6,5,4,3,2,1).

Guarantee

Non-recourse subject to standard carve-outs.

Assumable

Yes.

Cash Out

Cash out restricted. Loan amount may be increased to cover funds for repairs, improvements and transaction and closing costs. Outstanding debt incurred in connection with capital improvements already made to the property may also be included in the loan amount, subject to HUD approval.

Third Party Reports

Refinancing under HUD FHA Section 223(a)(7) does not require a new appraisal, market study or environmental assessment. A PCNA is required as part of the application and required every 10 years thereafter.

Sponsor Requirements

Refinancing of existing HUD FHA insured mortgages requires minimal underwriting of the sponsor.

Hours

Monday9:00AM - 6:00PM
Tuesday9:00AM - 6:00PM
Wednesday9:00AM - 6:00PM
Thursday9:00AM - 6:00PM
Friday9:00AM - 6:00PM
Saturday12:00PM - 5:00PM
SundayCLOSED

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