HUD Multifamily Loan 223(f)
Non-recourse FHA HUD Section 223f Multi-housing Financing Refinancing Lenders in Dallas Fort Worth.
HUD Apartment Loan Amount:
Up to $75 Million
Multifamily FHA HUD Loans 223(f) for Apartments
HUD Loan Information and Term Sheets
Eligible Properties
Market rate properties of any class, cooperatives, affordable or subsidized housing. Student housing is permitted, but cash flows may not assume multiple rents from one unit and rents must be in line with market-rate multifamily comparables.
Commercial Space
Limited to 25% of net rentable area and 20% of effective gross income.
Borrower
Single asset, special purpose entity, either for profit or nonprofit.
Recourse
Non-recourse.
Interest Rate
Fixed for term of loan, determined by market conditions at time of rate lock. Rate lock deposit is 0.5%, refunded at closing
Loan Parameters
Loan amounts up to $75 Million
|
Property Type |
Maximum |
Minimum Debt |
Acquisition |
Max Cash-Out LTV ³ |
|
Subsidized¹ |
90% |
1.11 |
90% |
80% |
|
Affordable² |
87% |
1.15 |
87% |
80% |
|
Market Rate |
85% |
1.18 |
85% |
80% |
Loan amounts $75 million and above, although HUD may impose more restrictive limits on loan amounts over $100 Million
|
Property Type |
Maximum |
Minimum Debt Service Coverage |
Acquisition |
Max Cash-Out LTV ³ |
|
Subsidized¹ and Affordable² |
80% |
1.25 |
80% |
70% |
|
Market Rate |
75% |
1.30 |
75% |
70% |
¹ At least 90% of the units covered by a project-based Section 8 contract.
² Regulatory Agreement with a minimum set-aside (e.g., 40% of units at 60% AMI, or 20% of units at 50% AMI) in effect for at least 15 years after the new loan closes.
³ Refinances may include 100% of eligible costs (satisfaction of existing initial deposit to capital needs reserve, due diligence and closing costs) plus additional funds up to the cash-out LTV.
In addition, loan cannot exceed the programmatic per-unit maximum as adjusted by HUD for project location.
Additional Terms
Repair and Rehab Limitations
Up to $15,000 per unit times a local cost factor (typically 190%-270%); additionally, repairs may not replace more than 50% of any two building systems: electrical, plumbing, mechanical, building envelope, structural.
Term and Amortization
A maximum term of 35 years, fully amortizing
Prepayment and Assumption
Negotiable, with best pricing for 10 years of call protection (can be a combination of lockout and/or penalty); loan is fully assumable subject to HUD approval.
Escrows
a) Taxes, insurance and mortgage insurance premium are escrowed monthly;
b) Capital needs reserve will be maintained with monthly deposits in accordance with HUD guidelines on a property-specific basis (minimum $250/unit/year).
Mortgage Insurance Premium
1% due to HUD at closing and 0.6% annually thereafter (0.25%-0.35% for affordable and subsidized properties, 0.25% for properties with Green certification from a list of accepted Green standards).
HUD Application Fee
0.30% of estimated loan amount due with submission of application. HUD Application Fees are reduced for properties in Opportunity Zones.
Third Party Reports
Appraisal, Environmental and Capital Needs Assessment
Timing
Typical application is submitted within 45-60 days of engagement, followed by 60-90 days to issuance of HUD’s commitment and 30-45 days to closing.
For current HUD loan rates, contact our FHA lenders in Dallas Fort Worth Texas.
Call For a Quote:
(214) 679-9673
Related Fannie Mae Loan Options
FANNIE GREEN
FANNIE HYBRID ARM
