HUD 223(a)(7)

HUD 223(a)(7) allows the refinancing of existing FHA insured mortgages on multifamily and healthcare properties.

The program allows borrowers to take advantage of low interest rates and extend the term of the initial mortgage by up to 12 years. The process for refinancing through the HUD 223(a)(7) program is expedited and does not require a market study or appraisal.

A HUD 223(a)(7) refinance takes roughly 60-75 days.

HUD 223(a)(7)

HUD Overview: 223(a)(7)

Eligible Properties
All properties with HUD insured loans
Loan Amount
No cash out permitted.  Loan may include the principle amount of existing debt and 100% of the transaction costs, including:
  • Fees
  • Repairs
  • Prepayment penalties
  • Third party reports
  • Initial reserves deposit
Interest Rate
Fixed for the term of the loan and determined based on market conditions at the time of rate lock
Mortgage Conditions
Loan must meet a minimum 1.11x debt service coverage ratio
Term and Amortization
Existing term with the option to extend to the lesser of:
  • Additional 12 years
  • Term of the original mortgage
Ten year step down (10,9,8,7,6,5,4,3,2,1)
Fully assumable
Mortgage Insurance Premium (MIP)
  • Market rate - 0.5%
  • Green certified - 0.25%
  • Affordable (10%-90%) - 0.35%
  • Affordable (90%-100%) - 0.25%
  • Healthcare - 0.55%
Third Party Reports
Only PCNA, if applicable
Fees and Deposits
  • Rate lock deposit - 0.5% refunded at closing
  • Multifamily application fee - 0.15% - credited back at closing
  • Healthcare application fee - 0.30% - 1/2 credited back at closing and 1/2 refunded 1-2 months after closing

5335 Meadows Road Suite 250 Lake Oswego OR 97035

503 624 5800

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