Prepayment Penalty

Do HUD 223(f) Loans Have Prepayment Penalties? 

Do HUD 223(f) Loans Have Prepayment Penalties? 

Like many types of multifamily financing, HUD 223(f) loans typically have prepayment penalties-- fees that are charged to the borrower if they attempt to pay off the loan early. HUD 223(f) prepayment penalties are negotiable, and can vary by lender, but often include a 0-2 year lockout, followed by a 8-10% to 1% declining prepayment penalty.