Do HUD 223(f) Loans Allow for Supplemental Financing?

HUD 223(f) Borrowers Can Get Supplemental Financing Through the HUD 241(a) Program

If you already have a HUD 223(f) loan, but want to make additional upgrades to your property, a HUD 241(a) supplemental loan could be the perfect way to do it. HUD 241(a) loans can allow 223(f) loan borrowers to make energy efficient improvements, purchase necessary safety equipment, or even expand current structures on their property.

What are the Terms for HUD 241(a) Loans?

HUD 241(a) loans have terms including:

  • Loan Term: HUD 241(a) loans must typically be coterminous with the original HUD 223(f) loan, if there are less than 25 years left on the current loan, or, if borrower gets a HUD waiver, the term may be extended to 40 years.

  • Loan Size: The lesser of:

    • 90% of the property’s maximum insurable amount, as determined by HUD

    • 90% of the property’s net operating income (factoring in their original HUD 223(f) loan payments)

  • Minimum DSCR: 1.11x

What are the Other Conditions of HUD 241(a) Financing?

In addition to the information mentioned above, HUD 241(a) loans:


TO LEARN MORE ABOUT FHA 223F LOANS, FILL OUT THE FORM BELOW AND A HUD LENDING EXPERT WILL GET IN TOUCH.