HUD 223(a)(7) Loans

HUD 223(a)(7) loans are the fastest way to refinance a HUD multifamily loan, such as a HUD 221(d)(4) or 223(f) loan. Designed only for current HUD multifamily borrowers, these loans are fixed-rate, non-recourse, and require limited documentation.

HUD 223(a)(7) Refinancing Loans

HUD 223(a)(7) Loans for Refinancing Current HUD Multifamily Debt

For investors and developers who already have a HUD multifamily loan, a HUD 223(a)(7) loan is often the best way to refinance it.

HUD 223(a)(7) refinances are designed to reduce interest rates, increase amortization, and ultimately, improve cash flow for properties, reducing the risk of a default. Unlike other HUD multifamily loans, which typically require significant paperwork, applying for a HUD 223(a)(7) refinance is relatively hassle-free, and these loans can close in as few as three months. Plus, HUD 223(a)(7) loans usually require only one third-party report, a project capital needs assessment (PCNA), in comparison to the several usually required to apply for a HUD 223(f) or HUD 221(d)(4) loan.

HUD 223(a)(7)

Terms last updated 2026-07-22

Interest Rates: 6.42% to 7.42%
Loan Amount: From $3M+
Loan Term: From up to 40 years
Max LTV: varies
Min DSCR: 1.11x
Recourse: Non-recourse
Amortization: up to 40 years

A fantastic and fast way to refinance existing HUD debt on multifamily properties.

Learn More HUD 223(a)(7) →

Sample Terms for HUD 223(a)(7) Loans in 2024

Size: Loans permitted up to 100% of "eligible transaction costs", including the existing debt principal, replacement reserves, prepayment penalties, and a project capital needs assessment (PCNA)

Term: Loan can increase by a period of 12 years, but new loan term cannot exceed the original loan term: 40 years for HUD 221(d)(4) and HUD 232 loans and 35 years for HUD 223(f) and HUD 232/223(f) loans

Amortization: Up to 40 years, fully amortizing

Minimum DSCR: 1.11x for for-profits, 1.05x for non-profits

MIP: For applications submitted or amended on or after October 1, 2025, the mortgage insurance premium is a flat 0.25% of the loan amount due at closing and 0.25% annually thereafter, for all property types; the prior tiered MIP rate categories (including the Green MIP reduction) were eliminated (90 FR 45789).45% if the property is utilizing low income housing tax credits (LIHTCs).

Advantages

Allows term increase of up to 12 years
Fast processing; closing can occur in as little as 60 days
Loans are fully assumable (with FHA/HUD approval)
HUD 223(a)(7) loans are non-recourse

Disadvantages

Still requires one third-party report, a project capital needs assessment (PCNA)
Requires an FHA application fee of 0.30% of the loan amount
Requires borrowers to pay both an initial, one-time MIP (mortgage insurance premium) and pay MIP each month

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