For HUD 223(f) loans of $75 million or more, requirements include:

• LTV of 80% and a minimum DSCR of 1.25x for affordable and subsidized properties
• Market-Rate Properties: Maximum LTV of 75% and a minimum DSCR of 1.30x
• 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
• 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)

To learn even more about the basics of submitting a file for consideration, visit the Apply Page of our website.

The advantages of HUD 223(f) loans of $75 million or more are as follows:

• Loan amount: No set maximum
• Terms: Between 10 and 35 years
• Leverage: Up to 85% LTV for market-rate properties, 87% LTV for affordable properties, 90% LTV for properties using rental assistance.
• Interest rates: Fixed for the life of the loan. Includes a mortgage insurance premium, or MIP.
• DSCR requirements: 1.18x for market-rate properties, 1.15x for affordable properties, and 1.11x for rental assistance properties.
• LTV: 85% - market-rate properties (the maximum for these type of properties), 87% - affordable housing, 90% - project-based rental assistance properties (i.e. Section 8, Section 202)
• DSCR: 1.18x - market-rate properties, 1.15x - affordable housing, 1.11x - rental assistance or subsidized housing properties
• Fixed-rate loans: Based on GNMA securities for up to 35 years
• Amortization: Longer amortization periods (35 years versus 30 years) offer lower monthly payments than other loans, freeing up more capital for property owners.
• Non-recourse and fully assumable
• No geographic restrictions - These loans are available for multifamily properties in all 50 states in the U.S. and several U.S. territories.
• Funds are available for repairs and improvements.
• Supplemental financing is available.
• No financial capacity requirements.
• No population requirements.

Yes, there are special considerations for HUD 223(f) loans of $75 million or more. 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).

For more information, visit the Additional Hud Requirements page and the Large HUD 223(f) Loans page.

For HUD 223(f) loans of $75 million or more, the eligibility criteria include:

• LTV of 80% and a minimum DSCR of 1.25x for affordable and subsidized properties
• LTV of 75% and a minimum DSCR of 1.30x for market-rate properties
• HUD may impose even more restrictive LTV and DSCR requirements for loans over $100 million
• A specific per-unit limit set by HUD (and adjusted by project location)

For more information, visit the Terms, Qualifications and Guidelines page of our website, or the Additional Hud Requirements page.

HUD 223(f) loans of $75 million or more have different requirements than smaller loans. For example, HUD allows for higher maximum mortgage limits in certain geographic areas. The percentages represent the exceptions to maximum mortgage limits allowed for projects in specific higher costs areas, such as Hartford CT (270%), Richmond VA (265%), Memphis TN (219%), Cincinnati OH (245%), Houston TX (213%), Salt Lake City UT (266%), and Honolulu HI (405%).

In addition to higher maximum mortgage limits, HUD 223(f) loans of $75 million or more also have access to more flexible terms. For example, HUD 223(f) loans of $75 million or more may have terms of up to 40 years, and leverage of up to 90% LTV for market-rate properties, 92% LTV for affordable properties, and 95% LTV for properties using rental assistance.

Overall, HUD 223(f) loans of $75 million or more offer some of the best terms in the industry for the acquisition and refinancing of multifamily and apartment properties. These loans are non-recourse, offer high leverage, low interest rates, and lenient DSCR requirements.