HUD 223f Interest Rates

Designed for the purchase or refinancing of multifamily properties, HUD Section 223(f) offers low-interest, fixed-rate financing on these fully amortizing loans. Borrowers need not fear higher interest refinances or balloon payments in years to come.

Interest rates are fixed throughout the life of FHA 223(f) loans. Specific rates for HUD 223(f) mortgages are determined by current rates and market conditions at the time of commitment.

As of November 2017, rates on HUD 223(f) loans were:

  • From 3.10% to 4.10% (excluding MIP)

  • From 4.10% to 4.75% (including MIP)

The minimum mortgage term for HUD 223f loans is 10 years. The maximum terms for the mortgage term are either 35 years or 75% of the project’s estimated remaining economic life (whichever is less). A longer amortization period allows for lower monthly payments. These loans are also fully assumable and non-recourse.

These HUD-backed mortgages are financed with Ginnie Mae (GNMA - Government National Mortgage Association) securities.