HUD FHA 223(a)(7)Apartment Loans

Multifamily and Healthcare properties with current FHA insured loans.

Nationwide.

The Lesser of:

• Original principal amount of existing insured mortgage;
• DSC of 1.11x (1.05x for non-profit borrowers);
• 100% of eligible transaction costs, including existing indebtedness, repairs, fees, third party costs and initial reserve deposit.

Up to 12 years beyond the remaining term of the existing mortgage, but not to exceed the original term.

Non-recourse.

Yes.

Cash out restricted. Loan amount may be increased to cover funds for repairs, improvements and transaction and closing costs. Outstanding debt incurred in connection with capital improvements already made to the property may also be included in the loan amount, subject to HUD approval.

Refinancing under HUD FHA Section 223(a)(7) does not require a new appraisal, market study or environmental assessment. A PCNA is required as part of the application and required every 10 years thereafter.

Refinancing of existing HUD FHA insured mortgages requires minimal underwriting of the sponsor.