FHA® 223(f) Refinance Loans for Multifamily

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Whether you're considering refinancing, acquisition, or moderate usage of your property, our tailored FHA 223(f) financial solutions are designed to empower your success.
Competitive Rates

FHA 223(f) Loan Terms and Requirements

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Loan Term & Amortization

It provide 35-year fixed-rate fully amortizing loans.

Minimum DSCR

1.176x debt service coverage ratio (DSCR) applies to market-rate properties or LIHTC-restricted properties with rents < 10% below market.

For LIHTC-restricted properties with rents at least 10% below market, the DSCR is 1.15x.

Properties with at least 90% rental assistance contracts have a DSCR of 1.11x.

Maximum LTV

85% loan-to-value (LTV) applies to market-rate or LIHTC-restricted properties with rents <10% below market.

For LIHTC-restricted properties with rents at least
10% below market, the LTV is 87%.

Projects with 90% or greater rental assistance
qualify for a 90% LTV.

Rate Structure

Fixed interest rate

Eligible Properties

Multifamily projects with a minimum three-year history, comprising detached structures and row houses. Eligible properties include market-rate, low-to-moderate income, and subsidized multifamily residences.

Eligible Borrower

A singular asset entity, whether for-profit, nonprofit or public borrowers.

Occupancy Requirement

Maintain an average 85% occupancy in the six months preceding HUD application submission.

Achieve a maximum economic underwriting occupancy of:

1. 93% for market-rate properties (with at least 20% market-rate units or LIHTC units with rents < 10% below market)

2. 95% for LIHTC restrictions covering at least 80% of units at rents at least 10% below market

3. 97% for properties with at least 90% rental assistance or 90% LIHTC set aside with rents at least 10% below market.

Cash-out is permissible when 80% of the value exceeds existing debt plus transaction costs.

However, only 50% of the net cash will be released at closing, with the remaining 50% held in escrow until all required repairs are completed.

A potential waiver is available to reduce the holdback to 25%.

Cash Out

Cash-out is permissible when the value surpasses existing debt plus transaction costs by 80%.

However, only 50% of the net cash will be
disbursed at closing, with the remaining 50%
held in escrow until all necessary repairs are finalized.

A potential waiver is available to reduce the holdback to 25%.

Tax & Insurance Escrows

It requires monthly deposits


Nonrecourse financing as per HUD Regulatory Agreement.

Commercial Space

Cap the commercial space at a maximum of
25% of net rentable area and 20% of effective
gross income, with a minimum underwritten vacancy of 10%.

Required Reports

The borrower bears responsibility for all essential report costs, encompassing but not limited to Appraisal, Market Study, Environmental Phase I, Phase II (if applicable), and PCNA.

Pre-1978 properties may necessitate lead-based paint and asbestos-containing material testing, while projects 30 years or older might mandate additional testing.

These costs are eligible for reimbursement from loan proceeds at closing.


A frequently used prepayment penalty format is the "10-9-8-7-6-5-4-3-2-1-0" structure. This entails a 10% prepayment penalty in the first year, with a subsequent 1% reduction on each 1-year anniversary, ultimately reaching a 0% prepayment penalty by the 10-year anniversary.


The loan is fully assumable upon approval from both HUD & CID, along with the payment of an assumption fee.

Good Faith Deposit

It is based on type of property and loan size

Expense Escrow

Yes. Enough to encompass CID's costs and expenses, as well as third-party report expenditures.

Origination Fee

It is negotiable

HUD Application Fee

A nonrefundable fee amounting to $3 per $1,000 (0.3%) of the mortgage is payable to HUD upon submission of the application.

HUD Inspection Fee

An amount of $30 per unit applies when repairs
are below $3,000 per unit. If the repairs exceed $3,000 per unit, a fee of 1% of the total repair
cost is applicable.

Rehabilitation Qualification

Limit repairs to a maximum of $15,000 per unit (adjusted for local high-cost factor), and constrain replacements to a single major building component.

Davis–Bacon Act

Not Applicable to this loan program

HUD mortgage insurance premium (MIP)

The cost of FHA insurance is set by HUD, and an initial Mortgage Insurance Premium (MIP) of 1% of the loan amount is due to HUD at closing.

For ongoing coverage, annual MIP rates vary: 0.60% for Market Rate Properties, 0.35% for Affordable Properties, 0.25% for Broadly affordable or energy-efficient properties, and 0.25% for "Green" properties achieving energy efficiency standards.

FHA 223(f) Loans & Its Benefits

What is FHA 223(f) Loan?

FHA 223(f) loans, with their comprehensive features, cater to the diverse needs of multifamily property owners, promoting affordability, stability, and financial flexibility.

Unlocking Opportunities with FHA® 223(f) Financing

Flexible Usage

FHA® 223(f) financing solutions cater to a range of needs, from refinancing existing loans to acquiring new properties or optimizing moderate property usage.

Acquisition Support

Planning to acquire a new commercial property? We provides comprehensive support for property acquisitions through FHA® 223(f) financing.

Moderate Usage Optimization

If your property requires moderate adjustments or improvements, our FHA® 223(f) loans offer a strategic financing solution.

Key Feature of
FHA 223(f) Loans

Our experienced team specializes in navigating the intricacies of FHA programs, ensuring a streamlined process for FHA® 223(f) refinancing.

Refinancing Existing Loans

Allows multifamily facility owners to refinance their existing FHA-insured loans, providing an opportunity to improve loan terms and potentially reduce interest rates.

HUD Mortgage Insurance

Benefits from FHA mortgage insurance, providing lenders with added security and borrowers with favorable loan terms.

HUD Approval

Requires approval from the U.S. Department of Housing and Urban Development (HUD), ensuring compliance with program guidelines.

Flexible Loan Terms

Offers flexibility in loan terms, providing borrowers with options that align with their financial goals and operational needs.

Financial Flexibility

Enhances financial flexibility for multifamily owners by optimizing existing debt structures, potentially leading to increased cash flow and improved financial stability.

Lower Interest Rates

Offers the potential for lower interest rates compared to existing loans, contributing to reduced debt service and overall cost savings.

We Cover


States & US Territories

Capital Investors Direct provides commercial hard money loan financing options in the following geographic locations of the United States:


200 MSA Tier I & Tier II Cities

Maryland, Texas, Florida, Utah, Colorado etc. We offer CRE Bridge Loan in top cities like Denver, Chicago, Colorado, San Diego etc.

How it Works?

Capital Investors Direct funds different commercial properties across the country. Below are few commercial properties we lend hard money for –
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5 minutes by filling out the form


Get Approval

We will get back to you within 24 hours
with a written disclosure of all loan terms


Loan Funded

Within days, the money will be credited
to your account.

Why Choose Us?

We go above and beyond to add to our list of satisfied customers and ongoing clientele We go above and beyond to add to our list of satisfied customers and
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Efficient Refinancing Process

Our experience with FHA loans allows for an efficient refinancing process, minimizing disruptions for multifamily owners and ensuring a smooth transition.


Tailored Financial Solutions

We understands the unique financial needs. They can provide tailored solutions that align with the specific requirements and goals of the multifamily industry.


Streamlined Application Process

With experience in FHA loan programs, we facilitate a streamlined application and approval process for FHA loans, making it more accessible for multifamily owners.


Transparent Communication

Transparent and open communication is a hallmark of Capital Investors Direct. Borrowers can expect clear and comprehensive information about loan terms, conditions, and the refinancing process.

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