FHA 223(f) Apartment Loans

FHA 223(f) Apartment Loans

Multifamily Rental Housing
Section 223(f)
Acquisition or Refinance

Summary:
Insured mortgages may be used to finance acquisition or refinance of rental properties consisting of 5 or more units 3-years old or older.

Eligible Borrowers:
• Single Asset Entity

Terms:
• Up to 35 Years

Loan Benefits:
• Non Recourse
• Fully assumable
• credit enhancement of Housing Bonds for AAA rating

Rates:
• Fixed for the length of the mortgage

Processing:
• Eligible for Multifamily Accelerated Processing (MAP).

Mortgage Loan Limitations:

Refinance
The maximum insured mortgage will be the lessor of:
• DSC - 1:17
• 85% loan to value (80% if cash out)
• 100% existing debt plus loan costs, including repairs
• FHA’s per unit mortgage limits

Acquisition
The maximum insured mortgage will be the lesser of:
• DSC – 1:17
• 85% of the loan to value
• 85% of acquisition costs including loan costs and repairs.
• FHA’s per unit mortgage limits

Secondary financing:
• Permitted; repayment is subject to availability of surplus cash, special conditions apply.

Prepayment Terms:
• Typically 5-Year lockout with a declining penalty of 1% per year for years 6 through 10, then 0%.




Chuck Kendall (773) 259-7074 kendallrealtyadv@gmail.com
Scott Kendall (847) 903-7578 hhcfhafinance@gmail.com