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BK-0910597

HUD Insured Loan Refinance             FHA Section 223(a)

Under section 223 (a)(7) of the National Housing Act, the FHA provides mortgage insurance to facilitate the refinance and moderate rehabilitation of existing HUD-insured multifamily properties. 

The unique demands and processes of HUD/FHA multifamily financing are generously offset by the advantages.  FSF streamlined internal procedures and staff of FHA dedicated professionals bring greater speed and efficiency to meet the accelerating needs of today's market.

Product Overview:

(For a Printable PDF of this program, please click here)

Eligibility                                                                                           For Refinance and moderate rehabilitation of existing HUD-insured multifamily properties

Loan Amounts                                                                                        Loan amount can be no greater than the original amount of the existing HUD-insured first mortgage

Term/Amortization                                                                                Not to exceed 12 years beyond the remaining term of the existing HUD-insured first mortgage.  All loans fully amortizing

Interest Rate                                                                                        Fixed rate are based on current market conditions.  Call for current rates

Debt service coverage ratio                                                                Debt service coverage ratio (DSCR) must be the same as the original DSCR under which the property was first financed                                                                                

Personal recourse                                                                                Non-recourse

Prepayment                                                                                          If loan converts to a Ginnie Mae MBS, a five year lock-out period then a declining prepay schedule normally applies (5%, 4%, 3%, etc..) but alternate lock-out and prepayment options are available                                                                 

Origination Fee                                                                                   

Commitment Fee                                                                                   

Third Party Fees                                                                                    Includes legal, appraisal, engineering, and environmental reports.  Seismic reports and survey may also be required

Mortgage Insurance Premium                                                               1% for the first year (payable at closing), .5% per year thereafter

Financing Fee                                                                          Negotiable and competitive  

Permanent Loan Fee                                                                    Negotiable and competitive

Permanent Loan Fee                                                                       Negotiable and competitive

Transaction Costs                                                                     Borrower is responsible for legal fees and customary closing costs which may be included in mortgage proceeds

Venture Placement Fee                                                                        1% to 2% dependent on property