Multifamily Housing

223(a)(7) Streamlined Refinance

Our direct HUD 223(a)(7) program provides a streamlined refinance option for borrowers with an existing HUD loan to lower that loan's interest rate, extend that loan's term, increase existing replacement reserves, and complete minor repairs (up to $1,500 per unit, not subject to Davis-Bacon wages).

If the existing HUD loan being refinanced has any prepayment penalty remaining, the penalty can also be paid by the 223(a)(7) refinance. 

Cash out is not available under this program; the 223(f) program must be used for cash out. The 223(a)(7) program is generally only utilized by borrowers who are focused on reducing their existing interest rate in the most time and cost effective manner possible. 

As part of the 223(a)(7) process, borrowers are not required to secure a new appraisal or market study, however a new PCNA (Property Capital Needs Assessment) and environmental review will be required as part of the application.

Typically, the 223(a)(7) program takes ~90 days from start to finish. Please see the presentation on the right side of this page for more information.