Multifamily Refinancing

Multifamily Refinancing Loans

Mortgage Loans For Multifamily Refinancing

Multifamily refinancing is a fantastic way to immediately improve cash flow, finance capital improvements or take cash out of an existing project. Unfortunately multifamily refinancing is too often overlooked by real estate developers and investors who, by nature, tend to focus on their next project. This is not the time to overlook low hanging fruit, as it were because Apartment Financing America is presently offering loans for multifamily refinancing with favorable loan terms and interest rates at generational lows.

The Department of Housing and Urban Development (HUD) recently revised their guidelines for FHA 223a7 streamlined multifamily refinancing. Under the new guidelines all existing 200 level FHA multifamily loans are now eligible for refinancing via FHA 223a7 streamlined refinancing. FHA 223a7 Streamlined Refinancing loans can now be used to refinance market rate multifamily properties, multifamily affordable housing properties, assisted living facilities, critical access and acute care hospitals and mobile home parks.

As a qualifying FHA MAP and LEAN lender Apartment Financing America is offering expedited processing for all FHA 223a7 streamlined multifamily refinancing loans. If you have an existing FHA 200 level loan, Apartment Financing America will refinance your loan at 3.25% fixed for 35 years. We are offering expedited processing, very fast closings and no out-of-pocket costs to the borrower in addition to a 3.25% fixed interest rate for 35 years.

Contact Apartment Financing America today to learn more about multifamily refinancing and Request Loan Quote.

FHA 223a7 Streamlined Multifamily Refinancing Overview

  • HUD provides the FHA 223a7 streamlined multifamily refinancing as an abbreviated program for all existing FHA 200 level loans.
  • All FHA 200 level loans are eligible for 223a7 streamlined multifamily refinancing, as long as they are in good standing.
  • The process is fast, involves minimal underwriting and requires a minimum amount of information.
  • Proceeds of the refinancing, after the existing loan is paid, can be used for closing costs, repairs, upgrades and reserves.
  • The FHA 223a7 is the lowest cost refinancing program in the world and is perfect for existing loans more than five years old.

Maximum Loan Term

The new loan term can be up to 12 years longer than the remaining term on the original loan.

Maximum Loan Amount

The lesser of:

  • Up to the original amount of the old loan
  • Amount supported by 90% of the NOI
  • Total cost including existing debt, repairs, transaction costs, and prepayment penalties

Prepayment Terms

The prepayment is reset because it is a new loan

Mortgage Rate

Changes daily, please call for an estimate

FHA Application Fee and MIP

.3% at the time of application and MIP of .45% per year

Loan Origination Fee

1.00% payable at closing

Third Party Costs

PCNA (Project’s Capital Needs Assessment) required

Replacement Reserves

Readjusted if necessary

FHA Inspection Fees

None if no repairs are required. $30 per unit if repairs under $3,000 per unit, 1% of repair cost if over $3,000 per unit. Collected at closing.

Exhibits Needed

  • Three years audited financials
  • Current rent roll
  • Mortgagee’s Letter showing current balances
  • Original Deed of Trust or Note
  • New title report
  • PCNA

Need a loan for multifamily refinancing? Apartment Financing America offers 35 year, fixed-rate, non-recourse refinancing loans with expedited closing.