HUD FHA 223 Apartment Building Loans Explained – Winston Rowe & Associates

For those seeking multi-family properties, HUD Federal Housing Administration (FHA) loans provide an easier way to finance this purchase with fewer qualifications and increased flexibility.

HUD approved lenders are able to assume a greater level of risk and provide borrowers with the most aggressive rates and terms in the market.

HUD 223(f) apartment loans are available for the acquisition or refinancing of 5+ unit multifamily properties and are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

The program is available for market rate rental housing or for properties accepting rental assistance, either tenant based or project based a 30 day minimum lease term required.

There are no income or rent restrictions under Section 223(f) unless otherwise required by a project based HAP contract or other regulatory agreement. HUD FHA 223(f) insured mortgages are non-recourse with no market - economic or population - restrictions.

The property must meet a minimum three-year stabilization requirement, with complete kitchens and baths and have been completed or substantially rehabilitated prior to the date of the mortgage application.

The loan may include repair costs not to exceed 15% of its value after repairs or no more than $6,500 per unit, except in high cost areas. Repairs may not include replacing more than one major building system such as plumbing or electric.

Cash out Refinances are allowed when 80% of value exceeds existing debt plus transaction costs, but only 50% of the net cash will be released at closing.

HUD FHA 223 (f) Multifamily Financing Guidelines:

Loan sizes above $1 million - no maximum

83.3% LTV for market rate apartments

87% LTV for project based rental assistance

Up to 35 year fixed rate terms

1.17 minimum DSCR

HUD insured mortgages are non-recourse

5+ residential unit properties, including, detached, semidetached, row, walkup, or elevator-type rental or cooperative housing.

All 50 states including the US Territories of Puerto Rico, U.S. Virgin Islands, and Guam

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

The best funding solutions occur when they combine data with consultation and common sense.

That's why Winston Rowe & Associates actually wants to speak with clients, so they can truly understand your business and its distinct needs.

You can contact them at 248-246-2243 or visit them online at

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