Multifamily
HUD 223(a)(7) Streamlined Refinance
Already have a HUD-insured loan on your apartment property? Section 223(a)(7) refinances it into a new HUD loan at today's interest rate and today's 0.25% mortgage insurance premium, often with a longer term, through a streamlined HUD review.
Key terms
| Term | Section 223(a)(7) |
|---|---|
| Eligible loans | Existing FHA-insured multifamily mortgages, including a 241(a) on the same property. Risk-share, coinsured, Section 202 and other HUD-held loans are excluded (except MAHRA restructurings) |
| Maximum loan | The lowest of: the original principal amount of the loan being refinanced; the cost to refinance (payoff, prepayment penalty, closing costs, upfront MIP, approved repairs, reserve deposits); and the amount supported by debt service |
| Debt service coverage | 1.11 minimum (1.05 where more than 90% of units have project-based Section 8) |
| Cash out | Not permitted |
| Term | Up to 12 years beyond the current maturity, limited by the program's maximum term and 75% of the property's remaining useful life |
| Rate | Fixed for the full term, fully amortizing, non-recourse |
| Mortgage insurance premium | 0.25% upfront and 0.25% annual |
| Repairs | Critical repairs before closing; non-critical repairs within 12 months, with a 110% escrow (a letter of credit is allowed). No new construction, additions or ground-disturbing work |
| Reports | Capital Needs Assessment required; streamlined environmental review; the loan is sized without an appraised value |
| HUD review | HUD targets a Firm Commitment within 30 days of a complete application |
When it makes sense
- Your rate is above today's market. The new loan resets the rate for the full term.
- You pay the old MIP. Before October 2025, market-rate loans paid an annual MIP of 0.60% (223(f)) or 0.65% (221(d)(4)). A new 223(a)(7) pays 0.25%, and part of the upfront premium on the old loan may be refunded. Loans under the old green and affordable categories already pay 0.25% to 0.35%, so for them the gain is in the rate and term.
- You need more time. Extending the maturity by up to 12 years lowers the payment and improves cash flow.
- You have repairs to fund. Approved repairs and reserve deposits can be included in the new loan.
The prepayment penalty on the existing loan counts as a cost to refinance, so it can be financed. HUD also allows the lender to pay any part of the penalty the new loan cannot cover.
How it works
1
Send us the numbers
Current loan statement (or the note rate, balance and maturity), the T-12 and the rent roll. We show you the new payment, the MIP savings and the payback.
2
Capital Needs Assessment and application
We order the CNA and submit through HUD's system.
3
HUD review
HUD targets a Firm Commitment within 30 days of a complete application; the commitment is good for 90 days.
4
Close
The new loan stays insured under the same section of the Act as the original and gets a new FHA number and a new Regulatory Agreement.
Any ownership change since the existing loan closed must already be approved through HUD's previous participation review; a Transfer of Physical Assets can run at the same time as the refinance.
Common questions
Can I take cash out with a 223(a)(7)?
No. Equity take-outs are not permitted. If you need cash out, a 223(f) refinance of the whole loan is the route; it is sized to value, up to 80% of value with cash out.
Do I need a new appraisal?
The 223(a)(7) is sized to the original loan amount, the cost to refinance and debt service, not to an appraised value.
Will the new loan get the 0.25% MIP?
Yes. The 0.25% rate applies to applications submitted on or after October 1, 2025.
Can I refinance my 241(a) supplemental loan at the same time?
Yes, if both loans are on the same property, with the same owner and the same legal description. Loans on different properties cannot be combined, even if the sites are adjacent.
Send us your current loan statement and we'll show you the new payment and the savings.
Updated October 2026. Program terms summarize HUD's MAP Guide, Chapter 18, and current HUD notices; every loan is subject to HUD approval. Not a commitment to lend. See also: HUD multifamily MIP: 0.25% | HUD 241(a) supplemental loans | HUD loan types.