top of page

HUD 223(f)

Eligible Properties

Existing Multifamily (5 unit) structures at least 3 years old


Single asset and single purpose entity, either for-profit or non-profit


Fully non-recourse

Loan Amount

No limits

Maximum Mortgage Limits

  • For a purchase transaction, the lesser of:
  • 83.3% LTV
  • 100% transaction costs (refinance); 85% transaction costs (purchase)
  • 1.20 DSCR
  • HUD statutory limits
  • 80% LTV cash out refinance available

Interest Rate

Fixed rate determined by market conditions at the time of rate lock

Amortization & Term

A maximum of 35 years fully amortizing

Mortgage Insurance Premium

1% payable at closing, .60% annually


Escrows for taxes, insurance and mortgage insurance premium are required

Replacement Reserves

Initial and monthly deposits required based on long term physical needs

Repair Escrow

Cash or a letter of credit for up to 20% of the estimated cost of repairs

Secondary Financing

Permitted up to 100% LTV under certain conditions

Commercial Space

Eligible for up to 20% of total square footage and 20% EGI

Origination Fee

Fees Negotiable

Placement Fee

Fees Negotiable

HUD Exam Fee

$3 per $1,000 of requested mortgage

HUD Inspection Fee

1% of the estimated cost of repairs or $30 per unit

Rate Lock Deposit

Typically 1/2% of mortgage amount, refunded at closing

Application Fee


Third Party Expense Deposit

Estimated at $22,500 for appraisal, PCNA, Phase 1, Accountant's Report

Legal Fees

Lender legal fees estimated at $12,500


Fully assumable

HUD Review Time

60 Days

1) Property must have an average physical occupancy of 85% for six months prior to submission of application to HUD.

2) 50% cash out funded at cash out; remainder upon completion of non-critical repairs.



bottom of page