HUD 232/223(a)(7) Healthcare streamlined refinance

HUD 232/223(a)(7) offers a streamlined refinance for eligible healthcare properties with an existing HUD-insured mortgage. We'll review the current loan and proposed terms to see whether the savings justify the transaction costs.

Send us the mortgage balance, note rate, remaining amortization, prepayment schedule and original HUD loan documents. Recent operating statements and reserve balances help us evaluate eligible costs and any proposed term extension. An extension remains subject to HUD approval and the original loan's applicable limits.

Cash-out is not available. An acquisition, conventional-loan refinance or major construction project needs to be reviewed under a different program.

HUD may approve a term up to the remaining term plus 12 years, but no longer than either the original ORCF program’s statutory maximum or the term when the original loan was first insured. The minimum term is 10 years. A term extension requires a capital needs assessment and review of reserves, remaining life and operating performance. Healthcare extension rules are separate from the multifamily cumulative-extension rule.

Eligible uses & property features

• Existing HUD-insured healthcare loans
• Streamlined refinance evaluation
• Eligible transaction costs
• Healthcare lending experience

What to consider

Cash-out is not available through the streamlined program. A lower rate alone does not establish a benefit; transaction costs and prepayment provisions also matter.