HUD 223(f) Fully Amortizing

Are HUD 223(f) Loans Fully Amortizing?

Are HUD 223(f) Loans Fully Amortizing?

When a loan is amortizing, it means that when a payment is made, it goes to both paying the loan's interest and paying off the principal. When a loan is fully amortizing, it means that the entire principal will be paid off by the end of the loan's term, while if a loan is partially amortizing, only a part of the principal will be paid off, leaving what's commonly known as a balloon payment. Fortunately for borrowers, HUD 223(f) loans are fully amortizing, which means that when the loan term is over (assuming the borrower does not default or refinance the loan), the entire principal will be paid off.