hud fha-223 refinance fha multifamily

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 occupancy

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

interest only

• N/A

prepayment

• 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.