HUD 221(d)(4) Refinancing: The Basics
If you get a HUD 221(d)(4) loan to create a multifamily development, can you refinance that loan later? The answer is yes. And, you can do use the HUD 223(a)(7) program to do so. The program, which is designed specifically for current HUD multifamily and healthcare borrowers to refinance their projects, offers some pretty amazing terms.
HUD 223(a)(7) Program Specifications
In many situations, a HUD 223(a)(7) refinance can help reduce the interest rate and improve cash flow, reducing the risk of default. Fortunately for owners/developers, no appraisal, market study, or environmental assessment are needed. Instead, only a capital needs assessment (CNA) is required. The only cost is 0.3% of the loan amount (which is due at application), half of which will be refunded at closing. Plus, HUD 223(a)(7) programs typically only take around 60 days to close, which is a lot speedier than the regular HUD 221(d)(4) loan process.