HUD 223(f) Loan - Acquisition or Refinance of Multifamily Properties

Eligible Properties | Market Rate, Affordable, and Subsidized Multifamily |
||||||||||||||||||
Eligible Borrowers | Single-asset, special purpose entities, either for-profit or non-profit. |
||||||||||||||||||
Location | Nationwide |
||||||||||||||||||
Loan Amount | No Minimum/No Maximum (subject to General Loan Parameters) |
||||||||||||||||||
General Loan Parameters | For loan amounts up to $75 million:
(Subject to statutory mortgage limits)
|
||||||||||||||||||
Interest Rate | Fixed rate, subject to market conditions at the time of rate lock |
||||||||||||||||||
Term & Amortization | Up to 35 years and fully amortizing |
||||||||||||||||||
Liability | Non-recourse. |
||||||||||||||||||
Mortgage Insurance Premium | Depending on property type: |
||||||||||||||||||
Assumability | Yes, subject to HUD approval |
||||||||||||||||||
Prepayment | Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available. |
||||||||||||||||||
Professional Liability Insurance | HUD requires a minimum coverage of $1 million per occurrence and $3 million aggregate. Waivers may be granted in cases where premiums are high and claims history is clean. |
||||||||||||||||||
Other |
|