Federal programs & compliance
FHA 223(f)
FHA mortgage insurance for acquisition or refinance of existing, stabilized multifamily — non-recourse, assumable, fixed-rate, up to 35-year amortization.
Definition
Section 223(f) of the National Housing Act insures mortgages on existing, stabilized multifamily properties for acquisition or refinance: non-recourse, assumable, fixed-rate loans with amortization up to 35 years, originated by MAP-approved lenders under the FHA multifamily regulations and underwritten to the MAP Guide. Repairs are permitted within program limits; projects needing substantial rehabilitation belong in 221(d)(4).
Leverage and debt-service-coverage tiers follow the MAP Guide's market-rate/affordable/rental-assistance ladder, and HUD-insured projects can invoke federal preemption of local rent control under 24 C.F.R. Part 246.
Why it matters in an underwrite
223(f) is the long-duration exit for stabilized assets: 35-year self-amortizing debt removes refinance risk from the hold-period math, at the cost of mortgage insurance premium, HUD processing time, repair escrows and ongoing asset-management oversight. It pairs naturally with HAP-encumbered assets — contract rents underwrite cleanly, and the Part 246 preemption argument matters in rent-controlled markets. Model the prepayment structure early; the lockout and step-down schedule drives exit flexibility.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.