What are the Occupancy Requirements for HUD 223(f) Loans?
Many HUD multifamily loans have minimum property occupancy requirements, and HUD 223(f) loans are no different. HUD 223(f) financing typically requires a minimum of 85% occupancy for the last 6 months before closing.
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HUD 223(f) Loan Occupancy Requirements
Many HUD multifamily loans have minimum property occupancy requirements, and HUD 223(f) loans are no different. HUD 223(f) financing typically requires a minimum of 85% occupancy for the last 6 months before application, which needs to be maintained until closing. Fortunately for borrowers, these loans are underwritten at slightly higher occupancies, including:
93% occupancy for market rate properties
95% for properties with at least 80% LIHTC units
97% for projects with at least 90% LIHTC or Section 8 units