Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects

 

To provide mortgage insurance to HUD-approved lenders for the purchase or refinancing of existing multifamily housing projects, whether conventionally financed or subject to federally insured mortgages at the time of application for mortgage insurance. The program allows for the long term mortgages that can be financed with Ginnie Mae Mortgage-Backed Securities.

Active 14.155 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, Section 223(f), as amended; Housing and Community Development Act of 1974, as amended, Public Law 93-383. 12 U.S.C. 1715n.
Section 223(f) of the National Housing Act was added by Section 311(a) of the Housing and Community Development Act of 1974. Regulations are found at 24 CFR, Part 200. For processing and underwriting instructions refer the MAP Guide. The program is administered by the Office of Multifamily Housing Programs, Office of Production. Both for profit and non-profit borrowers are eligible to apply. All persons are eligible to occupy such projects subject to normal occupancy restrictions. Section 223(f) is eligible for Multifamily Accelerated Processing (MAP). The borrower/sponsor works with the MAP-approved lender who submits required exhibits for Firm Commitment application, including a full underwriting package to the local Multifamily Hub or Satellite Office for review. The Multifamily Hub or Satellite Office reviews the application to determine whether the proposed loan is an acceptable risk. Considerations include market need and the capabilities of the borrower. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses. If the proposed project meets program requirements, the local Multifamily Hub or Satellite Office issues a commitment to the lender for mortgage insurance. Preapplication coordination is required. Pre-applications are not required for MAP processing. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The borrower, also called a sponsor, works with a MAP-approved lender who submits required exhibits with a Firm Commitment application, including a full underwriting package to the local Multifamily Hub or Satellite Office for review. The Multifamily Hub or Satellite Office reviews the application to determine whether the proposed loan is an acceptable risk. If the project meets program requirements, the local HUD Multifamily Hub or Satellite Office issues the commitment to the lender to insure the project. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. Section 223(f) insures lenders against loss on mortgage loans. These loans may be used to purchase or refinance existing multifamily housing projects. The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non-critical repairs that must be completed within 12 months of loan closing. Projects requiring substantial rehabilitation are not acceptable under this section and may not involve the replacement of more than one major system. The remaining economic life of the project must be long enough to permit a ten-year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less. Davis Bacon prevailing wage requirements do not apply to this program. Mortgage sizing depends on certain characteristics of the project including affordability restrictions and will be based on loan-to-value and debt service coverage ratios that can be found in the multifamily web site's MAP Guide or HUDclips. Not applicable. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards. Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Applications may be submitted any time through approved MAP lenders. Benefits accrue of the life of the loan and take the form of beneficial terms, i.e. - below-market interest rates and long-term fixed-rate mortgages. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub or Satellite Office listed at https://www.hud.gov/program_offices/housing/mfh/hsgmfbus/abouthubspcs Thomas Bernaciak
451 Seventh Street SW
Washington, DC 20410 US
thomas.a.bernaciak@hud.gov
Phone: (202) 402-3242 https://www.hud.gov/program_offices/housing/mfh 86-4077-0-3-371 (Guaranteed/Insured Loans) FY 22 FY 23 FY 24 FY 21 FY 20$12,873,775,662.00; FY 19$4,870,000,000.00; FY 13$7,700,000,000.00; FY 17 FY 14 est $7,000,000,000.00; FY 15 est $70,000,000,000.00; FY 16 - Reported under 14.134. Apartment Refinances (223a7 & 223f) Not applicable/available. Fact Sheet, Section 223(f) Mortgage Insurance; 24 CFR 200. The Multifamily Accelerated Processing (MAP) guide may be found at https://www.hud.gov/program_offices/administration/hudclips/guidebooks/hsg-GB4430 Not applicable.