FHA Multifamily Loan 223F Acquisition Or Refinance

FHA 223F Multifamily Acquisition Or Refinance

FHA Multifamily Loan under the 223f Program are some of the most competitive multifamily loans in the nation for Multifamily Acquisition Loans and Multifamily Refinancing Loans. HUD, through FHA provides mortgage insurance for existing apartment complexes to facilitate refinancing and for the acquisition and moderate rehabilitation of apartment projects which are at least three years old, although the three year requirement can be waived in certain circumstances.

Maximum Loan Term

35 years – not to exceed 75% of remaining economic life

Commercial Space

20% of net rentable area and 20% of effective gross income.

Personal Liability

None. Non-recourse for monetary default

Eligible Borrowers

For-profit individuals and entities and not-for-profit  single asset entities

Prepayment

Typically closed for 2 years then pre-payable year 3 at 108% of par declining 1% per year.  Shorter lock-outs are obtainable at a higher note interest rate

Maximum Loan Refinancing

1. The amount supported by 83.3%, 85%, or 87% of the NOI for market rate, affordable, or rental assisted properties, respectively.
2.  83.3%, 85% 87% of appraised value for market rate, affordable, or rental assisted properties, respectively.
3.  The greater of 80% of value or 100% of total project cost which is being refinanced.
4. FHA Statutory mortgage limits (FHA statutory loan limits are subject to adjustment based on the location of the project.
5. Contact Us for a determination of the loan limits that would apply to your project.

Interest Rate

Market interest rates change daily. Call for quote.

FHA Application Fee

0.3% of the loan amount due at application

Origination Fee

Negotiable

MIP

The first year 1% MIP fee due at closing, subsequently, .45% per annum

Repairs/Replacements

Repairs, deferred maintenance or capital improvements up to of 15% of value or $6,500 per unit plus one major system (adjusted for area) can be included in loan.

Maximum Loan Acquisition

• The amount supported by 83.3%, 85%, 87% of the NOI for market rate, affordable, or rental assisted properties, respectively.
• 83.3%, 85% or 87% of appraised value for market rate, affordable, or rental assisted properties, respectively.
• 83.3%, 85%, or 87% of acquisition cost for market rate, affordable, or rental assisted, properties, respectively.
• FHA Statutory mortgage limits (FHA statutory loan limits are subject to adjustment based on the location of the project.
• Contact us for a determination of the loan limits that would apply to your project)

Additional Loan Features

Need A Loan For A Multifamily Project?
Contact Darach Advisors for the most competitive FHA Multifamily Loans

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