Maximum Loan Amount

The maximum loan amount for HUD 223(a)(7) refinancing of existing FHA-insured multifamily or healthcare loans can only cover:

• The existing loan’s principal balance.

• Additional eligible refinancing costs - fees, repair costs, third-party costs, initial reserve deposits, etc.

Also, the minimum DSCR (Debt Service Coverage Ratio) is 1.11x for for-profit borrowers or 1.05x for non-profit borrowers.

Mortgage Terms

HUD allows a maximum term of up to 12 years — but the new term cannot exceed the terms of the existing HUD-insured mortgage. For example, refinancing a HUD 221(d)(4) loan cannot exceed 40 years (the original loan term).

Also, the refinancing cannot exceed 75% of the property’s remaining useful life. In some cases, HUD may allow an additional 12 years of financing. This happens only if the additional time can ensure a project’s economic viability.

Interest Rates

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.

Current Interest Rates

See our live interest rate table below. Note that HUD loans, which previously used the London Inter-Bank Offered Rate, or LIBOR, for interest, now are tied to the relevant SOFR index given below.

In this article:

1. HUD 223(a)(7) Mortgage Terms and Interest Rates
2. Maximum Loan Amount
3. Mortgage Terms
4. Interest Rates
5. Current Interest Rates
6. Get Financing