Eligibility for Construction Apartment Refinance
In an effort to preserve and expand the supply of affordable and workforce housing, the U.S. Department of Housing and Urban Development (HUD) has announced a major change to the FHA Section 223(f) program eligibility for construction apartment refinance. Borrowers no longer need to wait 3 years after the original Certificate of Occupancy to apply for 223(f) refinancing.
Advantages of HUD
This means that new or recently rehabbed multifamily properties that have loan amounts above $3,000,000.00+ can now be refinanced with the great terms Section 223(f) is known for, including:
- Amortization up to 35 years
- LTVs up to 85% for Market Rate, and up to 90% for Affordable
- Non-Recourse
- Cash Out Allowed up to 80%*
Debt Service Coverage Ratio
Construction Apartment Refinance eligibility is subject to the satisfaction of HUD underwriting requirements, which include a minimum DSCR of 1.17x for Market Rate properties and 1.11x for Broadly Affordable communities.