HUD 223(f) apartment financing.

How much can an apartment property borrow?

Current market-rate guidance allows up to 87% applicable LTV with a 1.15 DSCR, subject to all other limits. Eligible affordable categories can use different ratios. The approved amount is the lowest result of the applicable mortgage criteria, including value, debt service, transaction costs and statutory per-unit limits. HUD’s current ratio letter.

Before estimating proceeds, separate existing payoff, transaction costs, repairs, deposits, required reserves and distributable cash. Compare the net result with your objective, not just the gross loan amount.

Does the building have to be three years old?

A blanket three-year waiting rule is outdated. The MAP Guide allows certain recently completed or substantially rehabilitated properties to apply after achieving the applicable program DSCR for at least one full month. It requires three consecutive months of the required coverage before endorsement, plus the specific operating documentation and safeguards for that category.

That is not an automatic one-month closing. Rent concessions, achieved collections, normalized expenses and the remaining lease-up plan need review. Newly completed build-to-rent communities also have the separate 2026 BTR eligibility rules.

Repairs can change the financing route

Prepare a scope that separates life-safety items, accessibility work, ordinary repairs and major building-system work. Do not classify a property as light rehabilitation just because the purchase contract uses that phrase.

HUD’s substantial rehabilitation analysis considers more than a single dollar amount. The 2026 base per-unit threshold is $20,406 before applicable adjustments and the other tests in the MAP Guide. It is not a universal $20,406 repair allowance. Have the actual scope classified before budgeting a 223(f) closing. If it is substantial rehabilitation, compare 221(d)(4).

Prepare the acquisition or refinance

• Provide the current rent roll, lease concessions, trailing operating statements and occupancy history.
• Reconcile taxes, insurance, utilities, management and replacement needs against actual records.
• Identify purchase terms or debt payoff, prepayment obligations, ownership structure and any related-party sale.
• Flag repairs, environmental conditions and affordability restrictions before reports are ordered.
• Show the timing of deposits and any equity contribution separately from loan proceeds.

For a short acquisition deadline, compare a bridge-to-HUD plan with the costs and risks of waiting for permanent debt. A bridge loan does not guarantee the later HUD refinance.

How Stonehaven helps

We start with the proposed use of funds and the property’s operating picture. We help organize the financing request, compare permanent and interim structures, and identify missing information before the next underwriting step.

If you intend to sell or refinance again soon, review the actual prepayment and transfer provisions before selecting a long-term structure. An assumable loan still requires applicable approvals. Read 223(f) versus 221(d)(4) and the HUD application checklist.