HUD 223f Loans for Property Refinancing

Due to their low interest rates, HUD 223f loans are an ideal way to free up capital for other needs. When used for refinancing multifamily properties, the maximum FHA 223(f) loan amount must be the lesser of:

  • The amount that can be serviced “by 83.3%, 85%, 87%, or 90% of net operating income for market rate, affordable, rental assisted, or Section 202 properties, respectively”

  • “83.3%, 85%, 87%, or 90% of value for market rate, affordable, rental assisted, or Section 202 properties, respectively”

  • “The greater of 80% of value or 100% of the total cost of refinancing the existing indebtedness and other mortgageable transaction costs”

  • 100% of mortgageable transaction costs minus any applicable public loans, grants, and tax credits (i.e. LIHTC credits).

  • Any existing statutory per unit limits.