Can You Refinance a HUD 221(d)(4) Loan?

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

Lastly, just like regular HUD 221(d)(4) loans, loans through the 223(a)(7) program are non-recourse and fully assumable

To learn more about getting or refinancing a HUD 221(d)(4) loan for your multifamily development, fill out the form below and a HUD 221(d)(4) loan specialist will get in touch.