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%