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-232-223a7-terms.jpg

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
  • DSCR: 
    • 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!