HUD 223(a)(7) Loan Assumption

Are HUD 223(a)(7) Loans Assumable?

Are HUD 223(a)(7) Loans Assumable?

Just like other HUD multifamily loans, HUD 223(a)(7) loans are fully assumable subject to FHA approval and a fee of 0.05% of the original FHA-insured loan amount. The fact that these loans are assumable can be a significant benefit to borrowers; especially those who want to sell their property after a few years. This is because having a new borrower assume the loan prevents the previous borrower from having to pay a prepayment penalty.