HUD 223(f) Loan Interest Rates: What You Need to Know
If you're considering taking out a HUD multifamily loan, like the HUD 223(f) loan, it's essential that you know the interest rate. Fortunately, low interest rates are one of the major benefits of HUD 223(f) loans. However, it is important for borrowers to remember that these loans do require borrowers to pay an annual MIP, or mortgage insurance premium.
Do Interest Rates Stay the Same if Another Borrower Assumes a HUD 223(f) Loan?
If a new borrower assumes a HUD 223(f) loan, the interest rate will stay the same for the rest of the loan term. This is a fantastic benefit for both the old borrower and the new one. The new borrower gets to enjoy the original interest rate (especially if rates have risen), while, for the old borrower, it's that much easier to find someone willing to assume the loan.