MULTIFAMILY | FHA/HUD Section 223(a)(7)
Refinancing of Multifamily Properties with Existing FHA-Insured Debt
Our HUD Section 223(a)(7) mortgage program provides for the streamlined refinance of an existing FHA-insured project.
All properties that currently have FHA-insured debt.
Up to 12 years extension of the original FHA-insured loan maturity, not to exceed the maximum term for the original loan program.
Locked before closing and fixed for the duration of the term. (Subject to market conditions.)
Non-recourse for the duration of the term.
Customizable, typically a 10-year step down, based on market conditions and borrower preferences.
Subject to FHA/HUD and lender approval.
Maximum loan amount will be the lesser of the original principal balance when first insured or parameters below.
|Market Rate||100%||1.11||0.50% / 0.25%*|
|Affordable||100%||1.11||0.45% / 0.25%*|
(*If project meets Green/Energy Efficient housing qualifications.)
HUD Fees and Expenses
FHA Application Fee of 0.15% of loan amount.
Property Capital Needs Assessment (PCNA) may be required.
Approximately 3 - 4 months for engagement, submission, FHA/HUD review, and closing.
Ginnie Mae guaranteed mortgage-backed securities.
Other Program Parameters
- Repairs limited to $1,500 per unit, exclusive of accessibility changes.
- Cash out is not permitted.