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HUD FHA
223(f) Apartment
Loans - Refinance or
Purchase
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CommercialBanc
provides HUD FHA
insured apartment mortgages
under FHA Section
223(f) for the
acquisition or
refinancing of
apartment and
multifamily housing
properties. |
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HUD FHA apartment
loans are a great
financing option for
borrowers looking
for maximum leverage
and longer fixed
rates and terms. FHA
insured mortgages
are non-recourse
with no market -
economic or
population -
restrictions. |
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The
HUD FHA 223(f) is a
market rate
apartment program.
There are no tenant
income restrictions
or requirements,
unless otherwise
required by a
project based HAP
contract or
individual tenant
based voucher
program. |
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CommercialBanc is a
correspondent of the
Multifamily
Accelerated
Processing (MAP)
program. MAP
Lenders are able to
expedite the
underwriting,
processing and
closing of your HUD
FHA insured
apartment loan. |
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Why Choose a
223(f) Apartment
Loan - Advantages |
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80% LTV for
refinances
83% LTV for
purchases
83% LTC for
purchases
35 year amortization
35 year fixed rates
Minimum DSCR of 1.20
Up to 7.5% seller
seconds
Secondary financing
permitted
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Non-recourse
FHA apartment
mortgages are
assumable
No minimum
population
requirements
No minimum net worth
requirements
No yield maint. or
defeasance prepay
Funds for repairs
and improvements
Supplemental
financing available
Eliminate interest
rate risk
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Disadvantages of the
223(f) Program |
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Longer processing
times - 120
days at a minimum
(6-9 months is
typical)
Higher fees - HUD
and FHA fees add to
the overall cost of
the loan
Mortgage Insurance
Premiums (MIP) -
Initial and annual
premiums
Annual audited
operating statements
required
Replacement reserve
escrows required
HUD property
inspections required
Owner distribution
restrictions
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Is the
223(f) Multifamily
Program the Right
Choice for Me
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At CommercialBanc,
we offer apartment
loans from our own
portfolio - Banc
Series, HUD/FHA,
Fannie Mae, Freddie
Mac and partner
banks. Our goal is
to provide
the product that
best meets your
needs. For many
borrowers, a HUD FHA
insured apartment mortgage
is the perfect
choice. |
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Why Consider a HUD
FHA apartment loan: |
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Purchases up to the
lesser of 83%
loan-to-value or 83% loan-to-cost
including loan costs
and repairs
35 year fixed rates
/ 35 year
amortization / No
balloon payment
Avoid interest rate
risk and costs
associated with
refinancing
Property located in
a declining value
or distressed market and require
up to 83%
loan-to-value
financing
Property located in
a smaller
(population) market
Require or prefer a
non-recourse loan
Flexible prepay - No
yield maintenance or
defeasance prepay
risk
Loan is assumable
should you sell
Available for profit
and not-for-profit
borrowers
Detached structures
and row houses
eligible
Require funds for
repairs or
improvements
HUD FHA supplemental
loan (2nd mortgage)
available to fund
property repairs or
improvements
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HUD FHA
223(f) Program Costs
and Fees |
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Third Party Reports:
appraisal,
engineering report,
environmental
analysis and flood
certification
FHA Inspection Fee:
1% of repair costs
or $30 per unit if
repairs are less
than $3,000 unit
FHA Exam Fee: $3 per
$1,000 of the loan
balance
Financing Fee: 1%-3%
depending on loan
size and loan
complexity
Permanent Placement
Fee: 1%-2%
First Year Mortgage
Insurance Premium:
1% of loan amount
Monthly Mortgage
Insurance Premium:
.45%
Borrower's Legal:
Estimated at $10,000
Title & Recording
Fees: TBD
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HUD FHA
223(f) Escrow and
Reserves |
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FHA
223(f) Multifamily Mortgages