The HUD 223(a)(7) loan program is reserved for those with existing loans like the 223(f), 221(d)(4), HUD 232 and other FHA-insured multifamily and healthcare loans. Multifamily and healthcare properties with existing HUD-insured debt are eligible for the HUD 223(a)(7) refinance loan program. Unlike most other HUD multifamily loan programs, the HUD 223(a)(7) loan requires very little underwriting, only one third-party report (a PCNA, or project capital needs assessment), and can close in as little as 60 days.

To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.

Multifamily and healthcare properties with existing HUD-insured debt are eligible for the HUD 223(a)(7) refinance loan program.

To learn more about the HUD 223a7 refinance program, fill out the form to speak to a HUD/FHA loan expert.

The HUD 223(a)(7) loan program has several advantages compared to other financing options. It can reduce interest rates, increase amortization, and improve cash flow while reducing the cost of debt service. It can even absorb prepayment penalty costs. On top of all that, it is one of the fastest, easiest, and most affordable multifamily or healthcare loan that you can get. Plus, HUD 223(a)(7) loans require very little underwriting, and can close in as little as 60-days.

For more information, please visit this page and this page.

The maximum loan amount available through the HUD 223(a)(7) loan program is 100% of eligible refinancing costs. These costs include the principal amount of existing debt (the existing loan balance), fees, repairs, third-party costs, and initial reserve deposits. A minimum debt service coverage ratio (DSCR) is also required - 1.11x for for-profit borrowers or 1.05x for non-profit borrowers. To learn more about the HUD 223a7 refinance program, visit this page.

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.

The HUD 223(a)(7) loan program has repayment terms including:

• Loan Size: Loans are allowed up to 100% of the eligible transaction costs, including:
  • Existing debt principal
  • Eligible repairs
  • Initial replacement reserves
  • Prepayment penalties
  • Third-party reports (the only one required is a project capital needs assessment, or PNCA)
• Loan Term: May be increased up to 12 years, as long as the new loan doesn't have a term greater than 40 years (for HUD 221(d)(4) loans and HUD 232 loans) or 35 years (for HUD 223(f) and HUD 232/223(f) loans)
• DSCR:
  • Non-profit entities: 1.05x minimum DSCR
  • For-profit entities: 1.11x minimum DSCR

To learn more about the HUD 223a7 refinance program, fill out the form to speak to a HUD/FHA loan expert.