How Difficult is the Approval Process for HUD 223a7 Loans?
Without a doubt, the HUD 223(a)(7) loan process is faster and has fewer hoops than other FHA/HUD products. The streamlined, affordable process does not require new third-party reports like appraisals, market studies, or environmental reports. In fact, most 223(a)(7) refinances only require a project capital needs assessment (PCNA).
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!How the HUD 223a7 Approval Process Compared to Other HUD Multifamily Loans
Without a doubt, the HUD 223(a)(7) loan process is faster and has fewer obstacles than other FHA/HUD products. The streamlined, affordable process does not require new third-party reports like appraisals, market studies, or environmental reports. In fact, most 223(a)(7) refinances only require a project capital needs assessment (PCNA).
To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.
Related Questions
What are the eligibility requirements for HUD 223(a)(7) loans?
The HUD 223(a)(7) loan program is available for multifamily and healthcare properties with existing HUD-insured debt. For more information, please visit HUD 223(a)(7) Property Eligibility and FHA and HUD 223(a)(7): Refinancing Existing HUD Loans.
What documents are required to apply for a HUD 223(a)(7) loan?
The HUD 223(a)(7) loan process is faster and has fewer obstacles than other FHA/HUD products. The streamlined, affordable process does not require new third-party reports like appraisals, market studies, or environmental reports. In fact, most 223(a)(7) refinances only require a project capital needs assessment (PCNA).
To apply for a HUD 223(a)(7) loan, you will need to provide the following documents:
- A project capital needs assessment (PCNA)
- Proof of ownership
- Proof of insurance
- Proof of occupancy
- Proof of income
- Proof of debt service coverage
- Proof of tenant income
- Proof of tenant rent rolls
- Proof of tenant leases
- Proof of tenant security deposits
- Proof of tenant rent collections
- Proof of tenant rent arrears
For more information about the HUD 223(a)(7) loan program, please visit this page.
If you have any questions or would like to speak to a HUD/FHA loan expert, please fill out the form.
What is the maximum loan amount for a HUD 223(a)(7) loan?
The maximum loan amount for a HUD 223(a)(7) loan is 100% of eligible refinancing costs, including the principal amount of existing debt, fees, repairs, third-party costs, and initial reserve deposits. A minimum debt service coverage ratio (DSCR) is required - 1.11x for for-profit borrowers or 1.05x for non-profit borrowers. Source and Source.
What is the interest rate for a HUD 223(a)(7) loan?
The interest rate on HUD 223(a)(7) refinancing loans remains fixed for the life of the loan. The actual rate is based on the relevant SOFR index at rate lock.
For more information, you can download our easy-to-understand HUD 223(a)(7 loan term sheet.
How long does it take to get approved for a HUD 223(a)(7) loan?
The HUD 223(a)(7) refinance program typically closes about 60 days after the application is submitted. This source provides more information about the closing timelines for HUD 223(a)(7) loans. Additionally, this source provides more information about the FHA and HUD 223(a)(7) refinance program.
What is the repayment period for a HUD 223(a)(7) loan?
The repayment period for a HUD 223(a)(7) loan is up to 12 years, as long as the new term does not exceed the initial loan term. For example, a 221(d)(4) loan has an initial loan term of 40 years, and a 223(f) loan has an initial loan term of 35 years.
To learn more about the HUD 223a7 refinance program, click here.