Tap to get financing
Multifamily Loans
Property Types
MultifamilyHealth Care & Senior LivingStudent HousingAffordable HousingMobile Home ParkOffice, Retail & More
Loan Options
Fannie MaeFreddie MacConstruction LoansLoans Under $1MFreddie Mac SBLFHA/HUD Multifamily LoansForeign National LoansCMBSBank LoansLife CompaniesBridge LoansHard MoneySoft MoneyMezzanine FinancingCrowdfundingSBA 504 LoansMezzanine Construction LoansUSDA 538 LoansFix and Flip LoansFractured Condo LoansDSCR LoansRefinance
Resources
BlogLoan DocsForms and TemplatesRatesLingoVideo LibraryMultifamily For SaleCommercial MortgagesFrequently Asked QuestionsBeginner's Guide
Calculators
Multifamily Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorDebt Yield CalculatorCash on Cash Return CalculatorYield Maintenance CalculatorIRR Calculator
About
About UsLeadershipTeamContactAffiliate Program (Coming Soon)We're Hiring
Get financing
Newly Published
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Mar 14 at Multifamily Loans
Multifamily Minute Reader Reflections: How Big Are We Buying?
Explore the Janover Network
Mar 17 at Commercial Real Estate Loans
Top 10 Commercial Real Estate Lenders of 2023
Mar 15 at Commercial Real Estate Loans
Top 4 Refinancing Loans for Industrial Real Estate in 2023
Feb 20 at Commercial Real Estate Loans
How to Set Rent Rates for Your Commercial Property in 2023
Was This Article Helpful?
Last updated on Jan 3, 2023
2 min read

HUD 223(a)(7) Loans

HUD 223(a)(7) loans are the fastest way to refinance a HUD multifamily loan, such as a HUD 221(d)(4) or 223(f) loan. Designed only for current HUD multifamily borrowers, these loans are fixed-rate, non-recourse, and require limited documentation.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. HUD 223(a)(7) Refinancing Loans
  2. Sample Terms for HUD 223(a)(7) Loans in 2023
  3. Advantages
  4. Disadvantages
  5. Get Financing

HUD 223(a)(7) Refinancing Loans

HUD 223(a)(7) Loans for Refinancing Current HUD Multifamily Debt

For investors and developers who already have a HUD multifamily loan, a HUD 223(a)(7) loan is often the best way to refinance it.

HUD 223(a)(7) refinances are designed to reduce interest rates, increase amortization, and ultimately, improve cash flow for properties, reducing the risk of a default. Unlike other HUD multifamily loans, which typically require significant paperwork, applying for a HUD 223(a)(7) refinance is relatively hassle-free, and these loans can close in as little as 60 days. Plus, HUD 223(a)(7) loans usually require only one third-party report, a project capital needs assessment (PCNA), in comparison to the several usually required to apply for a HUD 223(f) or HUD 221(d)(4) loan. 

Keep reading below to learn more, or simply click here to download our easy-to-read HUD 223(a)(7) loan term sheet.

Sample Terms for HUD 223(a)(7) Loans in 2023

Size:  Loans permitted up to 100% of "eligible transaction costs", including the existing debt principal, replacement reserves, prepayment penalties, and a project capital needs assessment (PCNA)                               

Term:  Loan can increase by a period of 12 years, but new loan term cannot exceed the original loan term: 40 years for HUD 221(d)(4) and HUD 232 loans and 35 years for HUD 223(f) and HUD 232/223(f) loans

Amortization:  Up to 40 years, fully amortizing

Minimum DSCR:  1.11x for for-profits, 1.05x for non-profits 

MIP: Mortgage insurance premiums for HUD 223(a)(7) loans are 0.55% of the loan amount per year, or 0.45% if the property is utilizing low income housing tax credits (LIHTCs).

Advantages

  • Allows term increase of up to 12 years

  • Fast processing; closing can occur in as little as 60 days

  • Loans are fully assumable (with FHA/HUD approval)

  • HUD 223(a)(7) loans are non-recourse

Disadvantages

  • Still requires one third-party report, a project capital needs assessment (PCNA)

  • Requires an FHA application fee of 0.30% of the loan amount

  • Requires borrowers to pay both an initial, one-time MIP (mortgage insurance premium) and pay MIP each month

In this article:
  1. HUD 223(a)(7) Refinancing Loans
  2. Sample Terms for HUD 223(a)(7) Loans in 2023
  3. Advantages
  4. Disadvantages
  5. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Multifamily Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@multifamily.loans

Multifamily Loans

Beginner's Guide
Multifamily Refinance
Multifamily Mortgage Calculator
Current Rates
Commercial Mortgage Calculator

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.