HUD 232/223(a)(7) Refinancing

HUD-Insured Refinancing for Current HUD 232 or HUD 232/223(f) Borrowers

If you already own a senior living, assisted living, or skilled nursing facility that you built or purchased with a HUD 232 loan or a HUD 232/233(f) loan, but you want a lower interest rate or an extension on your loan term, you're in luck-- because the HUD 232/223(a)(7) refinancing program is designed for exactly that purpose. Like other forms of HUD multifamily financing, 232/223(a)(7) loans are fully assumable and non-recourse-- but, unlike other HUD multifamily loans, these loans require very little paperwork and only one third party report. 

Keep reading below to learn more, or simply click here to download our easy-to-read HUD 232/223(a)(7) loan term sheet.

Sample Terms For HUD 232/223(a)(7) Loans

Size: Loans are allowed up to 100% of the "eligible transaction costs", which include the principal of the project's existing debt, prepayment penalties, funding for required replacement reserves, and a project capital needs assessment (PCNA)         

Term: The loan can increase by a period of up to 12 years, but new loan term may not exceed the original loan term: 40 years for HUD 232 loans and 35 years for HUD 232/223(f) loans                                                       

Amortization: Up to 40 years, fully amortizing

Minimum DSCR1.11x for for-profits, 1.05x for non-profits 

MIP: HUD 232/223(a)(7) loans have an annual MIP of 0.55% of the entire loan amount, or 0.45% if the project is using low income housing tax credits (LIHTCs)


  • Allows term increase of up to 12 years

  • Streamlined processing; loans can close in as few as 60 days

  • Less paperwork and fewer reports required

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

  • HUD 232/223(a)(7) loans are non-recourse


  • The loan 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) fee and pay additional MIP each month