HUD programs

HUD 223(f) Multifamily acquisition & refinance

Acquire or refinance an existing apartment community with long-term, fixed-rate HUD financing.

Program at a glance

Term
Up to 35 years, fully amortizing; limited to 75% of remaining economic life.
Interest
Fixed for the loan term.
Value limit (LTV)
Up to 87% of appraised value; 90% for qualifying categories.
Debt coverage (DSCR)
At least 1.15×; 1.11× for qualifying categories, including MIP.
Cash-out limit
Up to 80% of appraised value; other sizing limits still apply.
Recourse
Nonrecourse, with standard carve-outs.
Annual MIP
0.25% under the current multifamily schedule.

The lowest applicable sizing result sets the loan amount. Debt coverage compares underwritten income with loan payments, including mortgage insurance.

Documents & videos

More program documents 14 files

Ownership & closing

Financial Statements & Mortgage Credit

Borrower entities, principal review and financial statement requirements.

HUD Multifamily Regulatory Agreement (2026)

Official multifamily form for firm commitments issued on or after April 1, 2026; confirm the applicable edition with counsel.

Real Estate Tax Abatements & TIFs

Bedford’s explanation of long- and short-term abatements, PILOTs and tax increment financing. Included numbers are illustrations, not a financing quote.

Technical reference

HUD Square-footage Definitions

Net rentable “paint-to-paint” and gross area definitions, with source references.

Program details & considerations

Loan sizing

Property categoryMaximum loan-to-valueMinimum debt coverage
Market-rate / LIHTC without a rent advantage87%1.15×
Qualifying LIHTC with a rent advantage90%1.11×
Rental assistance on at least 90% of units90%1.11×

Cash-out refinances also face a separate 80% loan-to-value test. A refinance without cash-out can exceed 80% if it meets the other limits. Acquisition costs and repair holdbacks may further restrict proceeds. The loan is limited by the lowest applicable sizing result; large loans and other special cases may require stricter underwriting. Debt coverage compares underwritten net operating income with principal, interest and mortgage insurance; 1.15× means $1.15 of income for every $1 of debt service.

HUD sizing guidance (PDF)

HUD 223(f) provides up to 35 years of fixed-rate, fully amortizing financing for the acquisition or refinance of an existing apartment property. Eligible repairs, reserves and closing costs can be included. Cash-out is available, subject to separate loan-sizing and repair-escrow requirements.

We start with the rent roll, operating statements, existing debt and your financing goals. Loan proceeds depend on the property's income, value and other HUD limits. We review expenses such as management, insurance and real estate taxes to make sure the proposed budget is supportable.

Both market-rate and qualifying affordable properties are eligible. The capital needs assessment establishes required repairs and replacement reserves. If the work qualifies as substantial rehabilitation, we would review the project under a different program.

Let us know about any tax abatement, PILOT, TIF or secondary financing early in the process. We'll also review the ownership and management team's experience and reconcile the property information across the rent roll, appraisal and third-party reports.

Eligible uses & property features

  • Existing apartment communities
  • Acquisition and refinancing
  • Eligible repairs and reserve funding
  • Market-rate and affordable housing
  • Single-asset borrower entity

What to consider

Review property insurance and management requirements early, including any support a self-managed property may need. Repair scope, accessibility, environmental issues and financial reporting affect the application. HUD approval does not itself lock the interest rate; pricing, loan proceeds and the completed rate-lock authorization must be coordinated before closing.

Eligibility, proceeds, terms and timing depend on the property, underwriting and current HUD requirements. This overview is not a loan commitment.

Loan processing timeline

  1. Pre-qualification & engagement

    Before application

    Review financials, recent rent rolls, the purchase price or loan payoff, and proposed repairs. Agree on the financing approach before ordering reports.

  2. Concept meeting

    If applicable · approx. 21 days

    Discuss the project with HUD before spending on reports. HUD requires this review for certain transactions; we confirm whether it applies to your project.

  3. Firm application preparation

    Approx. 55 days

    Order the appraisal, environmental and capital needs reports, plus other reports as applicable. Gather borrower exhibits, survey and title while we underwrite the loan.

  4. Firm submission & HUD review

    Approx. 55 days

    Submit the firm application. Work through HUD’s questions and any revisions needed for its decision.

  5. Firm commitment

    Approval milestone

    If approved, HUD issues its firm commitment. Review the loan terms and conditions to satisfy before closing. This milestone is included in the HUD review stage.

  6. Rate lock & closing

    Approx. 45 days

    Coordinate the rate lock, legal documents and closing conditions. Complete required pre-closing repairs; only HUD-approved deferred work follows closing.

Timing is estimated and varies by project; steps may overlap.

Detailed Timeline (PDF) ↗

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