Apartment Building

FHA Loans For Existing Multifamily Properties - HUD Section 207/223(F) Mortgages

Section 207/223(f) insures mortgage loans by facilitating the refinancing or purchase of existing apartment complex buildings and other multifamily properties. Properties that need a substantial amount rehabilitation are not eligible for mortgage insurance with this program.

Section 223(f) Purpose

The program allows for long-term mortgages that can be financed with Government National Mortgage Association Mortgage-Backed Securities. This improves the availability of mortgage funds and permits lower interest rates.

Eligible Uses

Insured mortgages may be used to finance rental housing with 5 or more units with complete baths and kitchens and have been rehabilitated for at least 3 years prior to the date of the application. Non critical restorations of the property are required to be completed within a year of the closing date. This program does not accept properties that require a substantial amount of rehabilitation. The term of the mortgage cannot exceed 35 years or 75 percent of the life of the physical improvements to the property (whichever is less).

Eligible Borrowers

Eligible mortgagors include profit and non-profit borrowers.

FHA Apartment Loans - HUD Multifamily Mortgages