Both the HUD 223(f) for the refinancing of existing multifamily properties and the HUD 232/223(f) program for the purchase of healthcare facilities are programs that have the best features of any product in the marketplace.
- Low fixed rate terms up to 35 years.
- Highest loan-to-value (LTV)% available in the marketplace.
- Lowest fixed interest rate available in the marketplace.
- Long-term fixed rate with no balloon payment, which mitigates interest rate risk.
- Highest loan-to-value (LTV) available in the marketplace (high leverage).
- No financial capacity requirements.
- Length of time for HUD approval (4 to 6 months).
- Annual CPA audited operating statements.
- Mortgage Insurance Premium (MIP) required.
- Higher transaction costs and detailed third-party reports required.
- Required property inspections.
For quicker executions and short-term property holders, Fannie Mae and Freddie Mac programs may fit better to meet your financial objectives.
Loan Type FAQs
- HUD 213 Construction, Rehabilitation, or Purchase of Cooperative Housing Facilities
- Designed for the construction, acquisition, or rehabilitation of affordable properties including detached, semidetached, row, walk-up, or elevator type housing consisting of five or more units.
- Term of up to 40 years (plus up to 36-month construction period); Fully amortizing.
- Fixed interest rate at commitment for both construction and permanent loans, based on market conditions and risk
- HUD 223(f) Purchase or Refinance Loan for Multifamily or Affordable Properties
- Idea for long-term property holders and short-term investors.
- Loan term is up to 35 years fully amortizing, not to exceed 75% of the remaining economic life.
- Loan is assumable so the prospective buyer can assume the low rate.
- Loan is non-recourse with the highest loan to costs percentages available.
- Fannie Mae Affordable Housing Preservation
- Fannie Mae Seniors Housing
- Fannie Mae Cooperative
- Fannie Mae Green Rewards
- Fannie Mae Fixed Rate
- Fannie Mae ARM 7-6
- Fannie Mae Structured Adjustable Rate Mortgage
- Fannie Mae Streamlined Rate Lock
- Freddie Mac Seniors Housing