Acquisition & Refinancing.
The 223(f) program is a financing program designed for acquisitions or refinancing of existing multi-family properties. This program can be used to finance repairs or for equity take-outs for a 35-year term.
Single purpose entities that can either be profit or non-profit motivated.
None. Loans are non-recourse.
There is no maximum loan unless limited by statutory caps.
35 year term.
85%, 87% or 90% of the project’s value for market rate, qualified affordable or qualified rental assistance properties, respectively.
Cash Out Feature
Borrowers can do an equity take-out up to an 80% Loan-to-Value.
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. Initial premium is between .25% and 1% for the first year and ranges between .25% and .60% in subsequent years depending on the project.
Interested in This Program?
Please contact us and one of our experienced loan officers will reach out to assist you.Contact Us