Can You Get a Rate Lock on a HUD 223(f) Loan?
HUD 223(f) Loan Rate Locks
If you're an investor looking to take out a HUD 223(f) loan to acquire or refinance a multifamily property, it's to your advantage to know what interest rate you'll be paying as soon as possible. While early rate locks are not available for HUD 223(f) financing, rate locks are available at HUD firm commitment, usually around 30-45 days before closing. Rate locks typically cost between 0.5% and 1% of the total loan amount and are refunded at closing.
What is a Rate Lock?
Also known as a rate commitment, a rate lock is a lender’s temporary promise to loan money at a certain interest rate with certain points. Usually, a rate lock only lasts through loan processing. A rate lock can either lock in the interest rate, the points, or both. In contrast, a rate lock could offer a floating interest rate and floating points.