HUD 223(f) Loan - Acquisition or Refinance of Multifamily Properties
Market Rate, Affordable, and Subsidized Multifamily
Single-asset, special purpose entities, either for-profit or non-profit.
No Minimum/No Maximum (subject to General Loan Parameters)
|General Loan Parameters||
The maximum loan is the lesser of:
For loan amounts up to $75 million:
(Subject to statutory mortgage limits)
Fixed rate, subject to market conditions at the time of rate lock
|Term & Amortization||
Up to 35 years and fully amortizing
|Mortgage Insurance Premium||
Depending on property type:
Yes, subject to HUD approval
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.