MULTIFAMILY | FHA/HUD Section 223(f)

Acquisition and Refinancing of Multifamily Properties

Our HUD Section 223(f) program provides for permanent financing for the purchase or refinance of market rate multifamily properties, affordable or rental assisted properties.

Multifamily Housing

Eligible Properties

Multifamily properties of any class, affordable or rental assisted properties.


Up to 35 years.

Interest Rate

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.

Loan Parameters

Maximum loan amount will be the lessor of the original principal balance when first insured or parameters below.

Market Rate 85% 1.176
Affordable 87% 1.15
Subsidized 90% 1.11

(*Max LTV for cash out refinance is 80%.)

HUD Fees and Expenses

  • The annual Mortgage Insurance Premium (MIP)is 0.60% of the outstanding loan amount for market rate transactions. Reduced MIP rates for affordable projects or projects that qualify for Green/Energy Efficient Housing.
  • FHA Application Fee of 0.30% of loan amount.
  • FHA Inspection Fee is $30 per unit where the repairs/improvements are greater than $100,000 in total but $3,000 or less per unit or $30 per unit or 1% of the cost
    of repairs or $1,500, whichever is greater, where the repairs/improvements are more than $3,000 per unit or $1,500 where the repairs/improvements are less than $100,000.
  • Replacement Reserves determined by a 20-year capital needs analysis, minimum of $250 per unit per annum.

Commercial Space

Limited to 25% of net rentable space and 20% of gross income.

Third-Party Reports

Appraisal, Environmental, Property Capital Needs Assessment (PCNA) required.


Approximately 6-9 months for engagement, submission, FHA/HUD review, and closing.


Ginnie Mae guaranteed mortgage-backed securities.

Other Program Parameters

  • Escrows for property taxes, insurance, MIP, and replacement reserves are required.
  • Total repairs are limited to approximately $45,000 per unit.
  • Age restricted properties may quality so long as head of household is 62 or older and occupancy is not restricted to any remaining occupants.