The Federal Housing Administration was created in 1934 by the National Housing Act, in order to promote home construction and reduce unemployment. The FHA operates a range of loan insurance programs, but builds no properties and makes no loans.
Prepayment occurs when a borrower pays off a loan balance before maturity (the end of the loan term). If a borrower does this, they will often be prepayment penalty of a certain percentage of the loan amount. In the case of HUD 223(f) loans, there is usually a 0-2 year lockout period, in which borrowers cannot repay the loan at all. After that, borrowers will typically face a 8-10% to 1% declining prepayment penalty.
Non-recourse loans are typically loans secured by collateral (often real estate). However, if a borrower defaults, they cannot be held personally liable and lenders may not seize their personal property or garnish wages. Instead, the lender must accept a certain amount of loss.
Multiple yet separate housing units in a single building or several buildings. An apartment building is one example, while other common examples include duplexes, triplexes, quadplexes, and mixed-use properties. In general, HUD 223(f) loans are only available for multifamily properties with 5+ units.