What Properties Are Eligible for HUD 223(f) Financing?
Eligible Properties for HUD 223(f) Loans
HUD 223(f) loans offer incredibly generous terms-- including 35-year, fully amortizing, fixed-rate financing, and nearly unbeatable leverage. Property types that can be financed with a HUD 223(f) loan include student housing, market-rate, affordable properties, and others.
HUD 223(f) Loans Permit Nearly All Property Types
In general, to be eligible for HUD 223(f) financing, a property:
Must have 5+ residential units
Must have complete kitchens and bathrooms for each unit
Can be row, walkup, detached, semi-detached, or elevator-type rental or cooperative housing
Can be student housing, but multiple rents cannot be derived from one unit and rents need to be similar to comparable multifamily properties
Can be market-rate, affordable, or rental assisted/subsidized (i.e. Section 8, Section 202)
Cannot be an assisted living, skilled nursing, or memory care property (though independent living facilities for seniors are allowed)
Must have all construction and major rehabilitation finished three or more years before beginning the HUD loan application process