The maximum loan amount for HUD 223(a)(7) loans 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

Expenses are underwritten based on the last three years of actual operating data and FHA field office estimates. Source

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.

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 offers several advantages, including:

• Reduced interest rates
• Increased amortization
• Improved cash flow
• Reduced cost of debt service
• Absorption of prepayment penalty costs
• Fast and easy loan process
• Affordable loan option
• Little underwriting required
• Closing in as little as 60 days

For more information about the HUD 223(a)(7) refinance program, visit this page.

The disadvantages of HUD 223(a)(7) loans include:

• The loan amount cannot exceed the current loan balance.
• The loan term cannot exceed 35 years.
• The loan must be fully amortizing.
• The loan must be fully assumable.
• The loan must be non-recourse.

Source: HUD 223(a)(7) Refinancing Pros and Cons

The HUD 223(a)(7) refinance program typically closes about 60 days after the application is submitted. This source and this source provide more information about the timing of HUD 223(a)(7) loans.