HUD 223(a)(7) Loan - Refinance of Existing HUD Loans

Eligible Properties | Existing HUD-insured multifamily and healthcare properties. |
Eligible Borrowers | Single-asset, special purpose entities, either for-profit or non-profit. |
Location | Nationwide. |
Loan Amount | Existing HUD-insured loan may be increased back up to 100% of the original principal balance (subject to General Loan Parameters). |
General Loan Parameters | The maximum loan amount is the lesser of:
|
Interest Rate | Fixed-rate, subject to market conditions at time of rate lock. |
Term & Amortization | The term of the existing HUD-insured loan may be extended by up to 12 years (subject to HUD approval) not to exceed the term of the original loan. |
Liability | Non-recourse. |
Mortgage Insurance Premium | 0.50% at closing, |
Assumability | Fully assumable, 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 in aggregate. Waivers may be granted in cases where premiums are high and claims history is clean. |
Other |
|