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.