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FHA SECTION 223(f) – Multifamily Accelerated Processing (MAP)

Loans to purchase or refinance affordable and market rate multifamily rental housing


  • Affordable housing is defined as:
    • Rent and income restrictions must be imposed, monitored and enforced by a governmental agency for at least 15 years after Final Endorsement, and
    • Either
      • a recorded Regulatory Agreement requiring the project to meet at least the minimum LIHTC restrictions of 20% of units at 50% of area median income (AMI), or 40% of units at 60% of AMI, with economic rents (i.e. the portion paid by the residents) on those units no greater than LIHTC rents, or
      • a Project-Based Section 8 contract for 90% or more of the units.

Projects need not use LIHTCs to qualify for affordable underwriting so long as they meet the above requirements.

Program Features

  • Loan is pre-payable, assumable and non-recourse; maximum term of 35 years with full amortization.
  • The cost of repairs and initial deposit to a reserve fund for building/equipment replacement can be included in the financing.
  • Commercial space is permitted up to 25% of the net rentable area of the project or 20% of effective gross income; commercial space is underwritten at the lesser of 90%, the actual rate, or market indications.
  • The cost of rehabilitation must not exceed the greater: of a) approximately $16,000 per unit adjusted by a high cost percentage based on geographic location; or, b) involve the replacement of at least 2 major building components. Projects whose costs exceed these limits may qualify under Section 221(d)(4).
  • Projects must reach 1 month of program debt service coverage least prior to filing an application and must be at 3 months of coverage before loan closing. 
  • Loan-to-value (LTV) and debt service coverage (DSC) requirements are based on project type and loan size.

Loans < $120 Million

Project Type
Loan to Value (LTV)
Debt Service Charge (DSC)
1.15 X*
Market Rate
1.176 X

*90% LTV and 1.11 X DSC for Section 202, 90% or more Section 8.

Loans > $120 Million

Project Type
Loan to Value (LTV)
Debt Service Charge (DSC)
87% or 80% (cash out)
1.25 X
Market Rate
75% or 70% (cash out)
1.30 X
  • HUD permits cash-out refinances at 80% LTV. Fifty per cent (50%) of any cash out proceeds after funding transaction costs, including the assurance of completion requirements, must be held in escrow by the Lender until the required non-critical repairs are completed and HUD approves the release.
  • For market rate properties, the underwritten physical occupancy rate is the lesser of 93% or that indicated by the market. For affordable properties, the underwritten physical occupancy is up to 95% for loans with more than 80% LIHTC units; and, up to 97% for projects with more than 90% Section 8 or LIHTC units.
  • HUD permits secured secondary financing up to total debt of 92.5% LTV, or higher, for affordable projects.


Application Fee to HUD
Upfront Mortgage Insurance Premium (.25% or .35% for tax credit/ affordable deals and .25% for “green” market rate deals
Add New
Inspection Fee:
  • $30 per unit where the repairs/improvements are greater than $100,000 in total but $3,000 or less per unit.
  • The greater of $30 per unit or 1% of the cost of repairs or $1,500, where the repairs/improvements are more than $3,000 per unit.
  • $1,500 where the total repairs/improvements are less than $100,000 (Can be waived).
Maximum Financing (Origination) Fee
Maximum Placement Fee
Costs of Issuance for Tax-Exempt Bond Transactions

An annual 0.60% Mortgage Insurance Premium (.25% or .35% for tax credit/affordable deals and .25% for “green” market rate deals) is paid to FHA.


  • Escrows are required for property insurance, real estate taxes, and HUD mortgage insurance premiums.
  • Replacement reserve escrow for on-going replacement of depreciable items is required for the term of the loan. Projects must obtain a new PCNA every 10 years, with the reserve for replacement deposit adjusted based on the results of the PCNA.
  • Escrow equal to 120% of the cost of repairs is required at closing. Approximately 100% is funded from loan proceeds; the Borrower is required to fund the remaining 20%, which is released upon completion of repairs. Escrows are 110% for affordable loans, with the Borrower funding 10%.