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FHA Refinance Loans

Unlock the potential of your multifamily investment with Capital Investors Direct's specialized FHA/HUD 223(f) loan program.
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We Offer FHA 223(f) Refinance Loans

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Designed to empower developers, investors, and organizations involved in multifamily properties, our FHA/HUD 223(f) loans offer a comprehensive and competitive financing solution tailored to your unique needs.
Competitive Rates
Flexible
Terms
FHA
Backing
Streamlined
Processes
Expert
Guidance

HUD/FHA 223(f) Loan Terms and Requirements

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Loan Term & Amortization
Up to 35 years (fully amortizing)
Minimum DSCR
1.11x
Maximum LTV/Purchase Price
Up to 95%
Fixed Rate
Yes
Eligible Properties
Existing Section 202 projects
Eligible Borrower
Single asset entity (for profit or nonprofit)
Developer Fee
Up to 15% of the acceptable development cost
Tax & Insurance Escrows
Monthly deposits required
Recourse
Nonrecourse, subject to HUD Regulatory Agreement
Commercial space
Maximum 25% of net rentable area and maximum 20% of effective gross income; 10% vacancy applied
Required reports
Appraisal, Project Capital Needs Assessment (PCNA) & Phase I Environmental
Prepayment
Negotiable; generally two-year lockout with a 10% to 1% declining prepayment penalty; other prepayment options available
Assumable
Subject to CID and HUD approval and payment of assumption fee
Good faith deposit
Based on project type and loan size
Expense escrow
Yes – sufficient to cover CID’s expenses and third-party report costs
Origination fee
Negotiable
HUD application fee
Nonrefundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD upon application submission
HUD inspection fee
$30 per unit when repairs are less than $3,000 per unit; if above $3,000 per unit, 1% of the total cost of the repairs
Legal/closing fee
Borrower pays CID’s counsel fee and miscellaneous closing costs
Rehabilitation qualifications
Repairs cannot exceed $15,000 per unit (adjusted for local high-cost factor); repairs/replacements are also limited to one major building component
HUD mortgage insurance premium (MIP)
HUD sets the cost of the FHA insurance; initial MIP is due to HUD at closing, and the MIP is escrowed monthly thereafter
Prepayment of section 202 loan
HUD’s Housing Notice 2013-17 provides guidance for the prepayment approval process
HUD mortgage insurance premium
HUD sets the cost of the FHA insurance; initial MIP is 1% of the loan amount due to HUD at closing. Annual MIP rates:
HUD MORTGAGE INSURANCE PREMIUM
The Federal Housing Administration (HUD) determines the cost of FHA insurance, with an initial Mortgage Insurance Premium (MIP) set at 1% of the loan amount payable to HUD at closing. Subsequent annual MIP rates are as follows:
1. Market rate properties: 0.60%
2. Affordable properties: 0.35%
3. Broadly affordable or energy-efficient properties: 0.25%

FHA/HUD 223(f) Refinance Loans & Its Benefits

What is FHA/HUD 223(f) Loan?
FHA/HUD 223(f) loans, provided by the U.S. Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA), are a powerful tool for refinancing and acquiring existing multifamily properties.

With Capital Investors Direct, you gain access to a financing solution backed by the government, providing security and favorable terms for your multifamily ventures.

Why You Need FHA 223(f) Multifamily Refinance Loans

Government Backing
FHA/HUD backing instills confidence and security for both lenders and borrowers.
Reduced Risk
Non-recourse nature of the loan minimizes personal liability, mitigating risk for borrowers.
Promoting Affordable Housing
FHA/HUD 223(f) loans align with the goal of promoting affordable housing, contributing to community development.

Pros of FHA 223(f) Refinance Loans

While FHA 223(f) refinance loans offer numerous advantages, borrowers should carefully consider their specific circumstances, financial goals, and the property's condition before pursuing this financing option.
Attractive Interest Rates
FHA 223(f) loans often come with competitive interest rates, providing borrowers with a cost-effective financing option.
Long-Term Fixed Rates
Borrowers can secure long-term fixed interest rates, offering stability and predictability over an extended period, typically up to 35 years.
High Loan-to-Value (LTV) Ratios
FHA 223(f) loans can have higher LTV ratios (up to 85%), allowing borrowers to finance a significant portion of the property's value.
Affordability Focus
FHA 223(f) loans often align with HUD's goal of promoting affordable housing, and borrowers may be incentivized to maintain affordable rental rates for a percentage of units.
Streamlined Refinancing Process
FHA 223(f) streamline refinance process allows borrowers to streamline the refinancing of existing FHA-insured loans, reducing paperwork and approval timelines.
Government Backing
The loans are backed by the Federal Housing Administration (FHA), providing an additional layer of confidence for lenders and borrowers.

Commercial Space Limitations

- Maximum Percentage of Net Rentable Area: The commercial space within the multifamily property should not exceed a certain percentage of the total net rentable area. This is to ensure that the majority of the property is dedicated to residential use.

- Maximum Percentage of Effective Gross Income: The income generated from commercial space within the property should not exceed a certain percentage of the property's effective gross income. This limitation helps maintain the financial viability of the property as a residential space.

- Vacancy Allowance: There may be a limitation on the vacancy rate applied to the commercial space, ensuring that a reasonable percentage of the space is occupied and contributing to the property's overall income.
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Location
We Cover

50

States & US Territories

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

200

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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01

Fill Out the Form

Apply for a commercial property loan in
5 minutes by filling out the form

02

Get Approval

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

03

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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01

Competitive Terms

Benefit from competitive interest rates and loan terms tailored to the specific needs of your project.
02

High Loan-to-Value (LTV) Ratios

Take advantage of higher LTV ratios, providing you with more flexibility in financing your multifamily property.
03

Long-Term
Fixed Rates

Secure the stability and predictability of long-term fixed interest rates, protecting your investment from market fluctuations.
04

Experienced Guidance

We are not just a lender; we're your partner in success. Our team of experts is here to guide you through every step of the FHA/HUD 223(f) loan process.

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1201 Seven Locks Rd
Suite 360 Rockville,
MD 20854
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