Costs and Fees
Costs and Fees for HUD 223(f) Loans: Basic facts about costs and fees for HUD 223(f) multifamily financing.Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!
HUD 223(f) Costs and Fees
While they do offer a variety of benefits, HUD 223(f) financing still requires developers to pay a certain amount of fees during the loan application and approval process. These include:
$25,000 application fee: covers due diligence and third-party reports
FHA application fee: 0.30% of the total loan amount
FHA inspection fees:
$30 per unit where repairs total over $100,000, but $3,000 or less per unit
If required repairs are greater than $3,000 per unit, the greater of:
$30 per unit or
1% of the cost of repairs
Finance and permanent placement fees: capped at 3.50% of the loan amount and paid from mortgage proceeds
Good-faith deposit (commitment and rate lock): 1% of the loan amount. Paid at commitment and refunded at closing
Standard borrower closing costs: title fees, lender's legal fees, etc.