Blog - Bedford Lending

HUD 223(f) Three Year Rule Change (Mortgagee Letter 2020-03)

06 Mar 2020 Compliance / Regulatory

Effective today, HUD allows the refinance of newly built or substantially rehabilitated multifamily properties through the 223(f) loan program.  Essentially any project constructed or rehabbed with a conventional source can use HUD as a permanent takeout after 3 months of stabilization. Previously borrowers had to wait three years. See the following mortgagee letter for more information:

Mortgagee Letter - https://www.hud.gov/sites/dfiles/OCHCO/documents/20-03hsgml.pdf