HUD 232/223(a)(7) Loans
Refinancing HUD 232 Loans for Current HUD borrowers
If you already have a HUD 232 or HUD 232/223(f) loan on a healthcare property, but want to reduce your interest rate, increase the amortization, and/or improve the property's cash flow, a HUD 232/223(a)(7) refinancing loan could be the perfect option. Just like other variations of the HUD 223(a)(7) loan, the HUD 232/223(a)(7) loan is one of the easiest HUD multifamily loans to apply for, and requires very little in the form of third-party documentation or other time-consuming paperwork. And, like other HUD multifamily loans, HUD 232/223(a)(7) loans are non-recourse, fixed-rate, and fully assumable (with FHA approval).
At Commercial Real Estate Loans, Inc., we're committed to helping developers create and maintain high-quality housing for America's seniors-- and we know that the HUD 232 and 232/223(f) loans are some of the best ways to finance development. That's why we're ready and waiting to help investors and developers through every stage of the HUD 232, HUD 232/223(f), and HUD 232/223(a)(7) application, approval, and closing process.
HUD 232/223(a)(7) Loan Terms and Information
HUD 232/223(a)(7) loan terms include:
- Loan purpose: Refinancing HUD 232 and HUD 232/223(f) loans for current borrowers
- Loan Size: Loans are permitted to up to "100% of the eligible transaction costs," including:
- Existing debt principal
- Initial replacement reserves
- Eligible repairs
- Third-party reports (only a PNCA, or project capital needs assessment, is typically required)
- Prepayment penalties
- Loan Term: Loan term can increase up to 12 years, but the new loan cannot have a term longer than the original loan: 40 years for HUD 232 loans or 35 years for HUD 232/223(f) loans
- For-profits: 1.11x minimum DSCR
- Non-profits: 1.05x minimum DSCR
Commercial Real Estate Loans, Inc. is the partner you need to help acquire, build, refinance, or repair your next multifamily or commercial real estate project. Whether you're a small startup or an established company, we have the knowledge and experience to give you more financing options!