Refinancing of Existing FHA-Insured Loans

HUD/FHA 223(a)(7) Mortgage Insurance

Purpose

The ability to refinance existing HUD-insured projects in an expedited fashion in order to reduce the interest rate and therefore lower monthly mortgage payments.

Eligibility

All existing HUD-insured projects that are currently out of the lockout period are eligible.

Loan Features

• Loan amount is the lesser of the original principal amount of the existing loan, or the unpaid principal balance of the existing mortgage amount plus loan closing costs.
• The term of the new mortgage is the remaining term of the original mortgage.
• The mortgagor may apply for a refund of the Mortgage Insurance Premium (MIP) on the original mortgage and a refund of up to one-half of the application fee of the new mortgage amount following the loan closing.