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 CriteriaDescription
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