Do HUD 223(f) Loans of $75 Million+ Have Different Requirements?

Very Large HUD 223(f) Loans: What You Need to Know 

While there is technically no maximum size limit for a HUD 223(f) loan, loans above a certain size may have stricter requirements. For example, for HUD 223(f) loans above $75 million, requirements include: 

  • Affordable and Subsidized Properties: Maximum LTV of 80% and a minimum DSCR of 1.25x

  • Market-Rate Properties: Maximum LTV of 75% and a minimum DSCR of 1.30x

Plus, if a loan is more than $100 million, HUD may decide to impose even more restrictive LTV and DSCR requirements in order to reduce their risk. Regardless, the overall size of a HUD 223(f) loan cannot go beyond a specific per-unit limit set by HUD (and adjusted by project location.)  

Project Location Adjustments

For example, below are a few high-cost percentage adjustments that HUD allows in certain geographic areas. The percentages represent the exceptions to maximum mortgage limits allowed for projects in specific higher costs areas:

  • Hartford CT — 270%

  • Richmond VA — 265%

  • Memphis TN — 219%

  • Cincinnati OH — 245%

  • Houston TX — 213%

  • Salt Lake City UT — 266%

  • Honolulu HI — 405%


TO LEARN MORE ABOUT FHA 223F LOANS, FILL OUT THE FORM BELOW AND A HUD LENDING EXPERT WILL GET IN TOUCH.