Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Learn
BlogYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
About us
TeamLeadership
Get financing
Newly Published
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Jul 1 at Apartment Loans
Real Estate Mutual Funds
Explore the Janover Network
Mar 27 at Multifamily Loans
Multifamily Minute Reader Reflections: Interest Rate Outlooks
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Was This Article Helpful?
Last updated on Aug 23, 2022
2 min read

HUD 223(a)(7) Refinancing Loan

For Existing HUD Borrowers, HUD 223(a)(7) refinances are designed to reduce interest rates, increase amortization, and ultimately, improve cash flow for properties, reducing the risk of a default.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. HUD 223(a)(7) Loans for Refinancing Current HUD Multifamily Debt
  2. Sample Terms For HUD 223(a)(7) Loans
  3. Get Financing

HUD 223(a)(7) Loans for Refinancing Current HUD Multifamily Debt

If you already have a HUD multifamily loan that is in need of refinancing, then the HUD 223(a)(7) loan is probably your most attractive option. The HUD 223(a)(7) refinance loan is designed to reduce interest rates, increase amortization, and ultimately, improve cash flow for properties, reducing the risk of default. In addition, any prepayment penalties can also be added to a borrower's HUD 223(a)(7) loan. This means that a developer won't have to provide much cash out-of-pocket if their original HUD multifamily loan is less than 10 years old.

HUD 223(a)(7) loans require remarkably little documentation; all borrowers need is a new project capital needs assessment (PNCA). Just like other HUD multifamily loans, HUD 223(a)(7) loans are non-recourse, and as if that weren’t enough, like HUD 221(d)(4) loans, HUD 223(f) properties with a certain number of affordable or low-income housing units may quality for low income housing tax credits (LIHTCs). Investors and developers looking to refinance their HUD loan may not be able to find a more attractive product on the market.

Sample Terms For HUD 223(a)(7) Loans

Size: Loans permitted up to 100% of "eligible transaction costs", including the existing debt principal, replacement reserves, prepayment penalties, and a project capital needs assessment (PCNA)

Term: Loan can increase by a period of 12 years, but new loan term cannot exceed the original loan term: 40 years for HUD 221(d)(4) and HUD 232 loans and 35 years for HUD 223(f) and HUD 232/223(f) loans

Amortization: Up to 40 years, fully amortizing

Minimum DSCR: 1.11x for for-profits, 1.05x for non-profits

MIP: Mortgage insurance premiums for HUD 223(a)(7) loans are 0.55% of the loan amount per year, or 0.45% if the property is utilizing low income housing tax credits (LIHTCs).

Advantages:

  • Allows term increase of up to 12 years
  • Fast processing; closing can occur in as little as 60 days
  • Loans are fully assumable (with FHA/HUD approval)
  • HUD 223(a)(7) loans are non-recourse

Disadvantages:

  • Still requires one third-party report, a project capital needs assessment (PCNA)
  • Requires an FHA application fee of 0.30% of the loan amount
  • Requires borrowers to pay both an initial, one-time MIP (mortgage insurance premium) and pay MIP each month
In this article:
  1. HUD 223(a)(7) Loans for Refinancing Current HUD Multifamily Debt
  2. Sample Terms For HUD 223(a)(7) Loans
  3. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Apartment Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2023 Janover Inc. All rights reserved.