Refinancing of Existing LEAN FHA Insured Loan.
The 223(a)(7) program is a financing program designed for the refinancing of existing multifamily properties that are already in the FHA Insured Loan Program. The program is used to lower debt service as well as finance repairs.
Single purpose entities that can either be profit or non-profit motivated.
None. Loans are non-recourse.
Loan amount cannot exceed original HUD loan amount.
Up to a 35 or 40 year term based on the original loan program.
80% of the project’s value for market rate for skilled nursing facilities and
assisted living facilities and 85% of the projects value for non-profit skilled
nursing and assisted living facilities.
Term Extension Feature
Loans can be extended up to 12 years from their original maturity as long as they do not exceed a 35 or 40 year term, based on the original program requirements.
Interest rates are fixed at closing. Rates are typically set lower than conventional financing due to the credit enhancement provided by FHA at closing.
Mortgage Insurance Premium
A mortgage insurance premium is paid annually based on the outstanding principal. Premiums range between .45% and .50% depending on the project.
Interested in This Program?
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