Can You Refinance a HUD 232 or HUD 232/223f Loan?

232/223(a)(7) Refinancing for HUD 232 and HUD 232/223(f) Loans

If you own a senior living facility with a loan insured under the HUD 232 or HUD 232/223(f) programs, you can refinance that loan under the 232/223(a)(7) refinancing program. Borrowers can refinance more than one HUD-insured loan on the same property with one 232/223(a)(7) loan, though the entire loan amount cannot exceed the Maximum Insurable Loan Calculation (MILC). 

What are the Terms for 232/223(a)(7) Refinance Loans? 

232/223(a)(7) refinances have a minimum term of 10 years. In most cases, the term of the 232/223(a)(7) refinance loan will not be longer than the remaining term of the original loan. When refinancing multiple FHA loans, the larger or primary loan determines the term of the refinance loan. 

Can You Get an Extension on a 232/223(a)(7) Refinance Loan?

In some cases, the Office of Residential Care Facilities (OCRF) allows a 232/223(a)(7) extension beyond the term of the original loan. The new loan term cannot be any longer than "the remaining term of the original loan plus 12 years." The new loan also cannot be longer than the statutory term limit of the original loan (usually 40 years), and cannot be longer than the term of the original loan when it was issued. For example, if a 30-year HUD 232 loan is getting refinanced, the new loan cannot have a term longer than 30 years. 


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