FHA 223(f) provides mortgage insurance for acquisition, refinance, or moderate renovation of existing apartments and housing cooperatives. It offers up to 85% loan to value and a 35 year loan term.
- Multifamily properties and cooperatives that are at least 3 years old
- All units must contain full kitchens or kitchenettes and bathrooms
- Properties must be in safe, habitable conditions; loan can provide for rehabilitation up to $6500 per unit, multiplied by the applicable high cost factor for the area
The loan can not exceed the lesser of:
- 85% of fair market value
- 85% of projected net operating income divided by the applicable loan constant
- 85% of certifiable transaction costs
- Statutory mortgage limits designated by HUD
The Loan can not exceed the lesser of:
- 85% of fair market value
- 85% of projected net operating income divided by the applicable loan constant
- The greater of 100% of certifiable transaction costs or 80% of fair market value
- Statutory mortgage limits designated by HUD
Maximum loan term is 35 years
Up to 35 year amortization
Fixed rate
Maximum 95% occupancy
Non-recourse - Construction and Permanent
Assumable subject to lender and HUD approval and assumption fee
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