HUD 223(f) Multifamily acquisition & refinance

Start with the rent roll, operating statements, existing debt and your financing goals. We review income, expenses and the ownership and management team to assess the proposed loan.

Eligible repairs, reserves and closing costs may be included. The capital needs assessment establishes required repairs and replacement reserves. Work that qualifies as substantial rehabilitation needs a different program. Flag any tax abatement, PILOT, TIF or secondary financing during the initial review.

Build-to-rent communities with detached homes, duplexes or triplexes may also qualify. Under Mortgagee Letter 2026-12, the certificate of occupancy must be dated less than three years before application. The property must have at least five units developed for long-term rental use on one cohesive, contiguous site. The usual 223(f) operating-history, debt-coverage and cash-out requirements still apply.

Eligible uses & property features

• Existing apartment communities
• Eligible recently developed build-to-rent 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. For build-to-rent, we also review the site layout, ownership, management and BTR-specific vacancy, expenses and replacement reserves.