Financing Guides

Current, cited answers to HUD & agency multifamily financing questions

Every figure on these pages is dated and sourced. When a rule changes — a new MIP notice, an updated selling guide, a revised statute — we re-date the page and update the citation. Static blogs can't keep that current; freshness and provenance are the whole point.

11 guides · corpus last reviewed June 13, 2026

HUD MIP

What is the current FHA multifamily MIP rate?
For applications for firm commitment received on or after October 1, 2025, HUD set a flat 25 basis points (0.25%) annual MIP for ALL FHA multifamily programs — 221(d)(4), 223(f), and 223(a)(7) alike. The prior green / affordable / market-rate rate categories were eliminated.

HUD 223(f)

What is an FHA 223(f) loan and how is it sized?
FHA Section 223(f) is HUD's insured permanent loan for refinancing or acquiring existing multifamily that is at least three years past substantial completion. It offers up to 85% LTV (87% affordable), 35-year amortization, and non-recourse terms, sized as the lowest of five HUD tests.

HUD 223(a)(7)

When should I use HUD 223(a)(7) instead of a full 223(f) refinance?
Use 223(a)(7) for a rate-only streamlined refinance of an existing HUD-insured loan: 30-45 day closing, ~$50-100K cost, 1.05x DSCR, no LTV test, no cash-out. Use a full 223(f) when you need cash-out, longer term extension, or to finance significant capital improvements.

DSCR / Sizing

What is the minimum DSCR for a HUD 223(f) refinance?
The minimum DSCR for a HUD Section 223(f) refinance is 1.176x for market-rate transactions and 1.11x for affordable transactions (≥50% of units restricted at ≤80% AMI for 30+ years). DSCR is calculated on stabilized NOI divided by annual debt service INCLUDING the annual MIP.

Fannie Mae DUS

What is a Fannie Mae DUS loan and what are the terms?
Fannie Mae DUS (Delegated Underwriting and Servicing) is the agency's primary conduit for permanent conventional multifamily debt. Approved lenders underwrite on Fannie's behalf and retain 5% risk share, enabling 30-45 day closings — up to 80% LTV, 1.25x DSCR, non-recourse, $1M to $100M+.

Freddie Mac Optigo

What is Freddie Mac Optigo and how does it compare to Fannie DUS?
Optigo is Freddie Mac's branded multifamily platform with three channels: Conventional (≈$1M-$100M+, K-Series), Small Balance Loan (SBL, $1M-$7.5M), and Targeted Affordable Housing. Conventional Optigo prices within 5-15 bps of equivalent Fannie DUS; the main structural difference is defeasance availability on K-Series.

LIHTC

How does the LIHTC 130% basis boost work?
IRC §42(d)(5)(B) gives a 30% increase in eligible basis for LIHTC projects in a Qualified Census Tract (QCT) or Difficult Development Area (DDA), raising the annual credit by 30% on the boosted basis. State HFAs can also designate projects for the boost outside HUD-mapped QCTs/DDAs.

Section 8

What are the Section 8 HAP contract renewal options?
HUD §524 of the Section 8 Renewal Policy Guide defines six renewal options for expiring project-based HAP contracts: 1A and 1B (Mark-Up-to-Market), 2 (OCAF adjustment), 3 (budget-based), 4 (termination), 5 (RAD conversion), and 6 (rent reset to comparable rent).

Lender Selection

State Tax

How does California Prop 13 affect my multifamily acquisition tax bill?
A California acquisition is a change-in-ownership event that resets the property's assessed value to the purchase price, so your post-acquisition tax bill is roughly purchase price × 1.10-1.30% — almost always far above the seller's prior-year bill. Never underwrite to the seller's last tax bill. Transferring 50%+ of a partnership interest also triggers reassessment.

Stop reading, start underwriting

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