Benefits of the HUD 223(a)(7) Loan Program
HUD 223(a)(7) multifamily refinancing has several advantages and disadvantages. Some of these are outlined below:
This program extends the original loan term and reduces the current interest rate.
Borrowers can finance up to 100% of eligible costs. By increasing the unpaid principal, borrowers can cover closing costs, pay for repairs, and boost replacement reserves.
Since there are no new appraisals, market studies, or environmental reviews required, closing takes less time. Many 223(a)(7) loans close in 60 days or less.
There are fewer fees and a lower overall cost.
The application process is streamlined.
These loans are only available to refinance existing HUD-insured mortgages on multifamily and healthcare properties.
The refinanced amount cannot exceed the amount of the original mortgage.
Cash outs are restricted.
It excludes certain products including Risk Share mortgages, Co-insured mortgages, Section 202 loans, and certain other HUD-held mortgages.
To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.