FHA HUD 223(f) Loans

FHA HUD 223(f) Apartment Loans are available for the acquisition and refinancing of 5+ unit multifamily properties. There is no income or rent restrictions under Section 223(f) unless otherwise required by a project based HAP contract or other regulatory agreement. This is loan is fixed for 35 years, or 75% of the remaining economic useful life (subject to PCNA report). Financing up to 83.3% LTV for market rate, 85% LTV for Affordable, and up to 90% or greater rental assistance. The loan is fully assumable subject to FHA approval. Furthermore, HUD insured mortgages are non-recourse, therefore no tax returns, or minimum liquidity is needed to qualify.

Lending Criteria Description
Purpose:
  • Purchase and Refinance
Markets:
  • Nationwide
Eligible Borrower:
  • Individual
  • Single Asset LLC’s
  • Special Purposes Entities
  • For Profit or Non-Profit
Property Type:
  • Apartment Buildings
  • Commercial – Carve Outs (25%)
Max Loan-to-Value:
  • Subsidized:  90%
  • Affordable:  87%
  • Market: 85%
Minimum Credit Score:
  • 650
Prepayment Penalty:
  • 10-Years Step-Down
Maximum Debt-Service-Ratio (DSR);
  • 1.11% – 1.18% – Respectively
Recourse;
  • No – Standard Carve Outs
Broker Fee:
  • 1 point
Terms:
  • 35-Years Fixed
Mortgage Insurance:
  • 1% due at closing – Up front
  • 0.60% – Annually thereafter
Loan Amounts:
  • $2,000,000+
Closing Timeframes:
  • 45 – 60 Days – Engagement
  • 60-90 Days – HUD Commitment
  • 30-60 Days – Closing
Amortization:
  • 35-Years
Collateral:
  • 1st Trust Deeds
Impounds:
  • Required for Tax & Insurance
HUD Application:
  • 0.30% of Estimated Loan Due with Submission of Application.
Other Costs:
  • All 3rd Party Fees
This information is NOT a loan approval or commitment to lend. The actual loan amount, interest rate, fees, costs and monthly payment on your specific loan transaction can vary and will depend on your choice of loan product and your unique credit profile. Loans (in CA) will be made pursuant to BRE License #02001852. Loan Brook, Inc. is an equal opportunity lender.