Maximum Amounts for HUD 223(a)(7) Loans
HUD 223(a)(7) loans cannot exceed 100% of eligible refinancing costs. These 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 required - 1.11x for for-profit borrowers or 1.05x for non-profit borrowers.
To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.