HUD 223(a)(7) Multifamily streamlined refinance

HUD 223(a)(7) refinances an existing FHA-insured apartment loan. It may reduce debt service, cover eligible transaction costs and replenish reserves. We'll compare the proposed payment with the current loan, including prepayment costs, closing expenses and any change in amortization.

The existing mortgage must already be FHA-insured, and cash-out is not available. If you have a conventional loan or want to take equity out of the property, we can review HUD 223(f) instead.

The new loan can be re-amortized over the remaining term or an approved extension. The ordinary extension limit is 12 years beyond the originally insured mortgage’s maturity, including extensions already used. The new term is also limited by the original program’s maximum term and 75% of remaining economic life. For example, 20 years remaining may support a new 32-year amortization if the other limits are met; a second refinance does not automatically restart the 12-year allowance.

Loan proceeds are limited by the original insured principal, eligible existing debt and transaction costs, and debt-service support. The usual test uses 90% of underwritten net operating income (about 1.11× coverage). Qualifying projects with more than 90% project-based Section 8 assistance and qualifying Section 213 cooperatives may use 95% (about 1.05×); assistance-term conditions must also be met. No equity cash-out is available.

Eligible uses & property features

• Existing FHA-insured mortgages
• Streamlined refinancing path
• Potential debt-service improvement
• Eligible repairs and reserve replenishment

What to consider

This is not a cash-out program. Savings are transaction-specific, and any term extension, eligible costs and required reports remain subject to program requirements.