Which FHA multifamily program fits?
FHA has a program for each situation, and they aren't interchangeable. Answer three questions. If you already know the program, go straight to the sizer.
Likely program
223(f)
An existing, stabilized property: purchase or refinance, with repairs below the substantial rehab line.
All the paths at once
| Situation | Program | Why |
|---|---|---|
| You already have an FHA-insured loan and want a lower rate, a longer term or the 0. | 223(a)(7) | 25% premium, with no cash out. |
| You already have an FHA-insured loan and need money for improvements or additions, without disturbing the first mortgage. | 241(a) | |
| You have an FHA loan but need cash out or a bigger loan, which a 223(a)(7) can’t do. | 223(f) | A new 223(f) pays off the old loan. |
| An existing, stabilized property: purchase or refinance, with repairs below the substantial rehab line. | 223(f) | |
| Built less than three years ago. | 223(f), with conditions | HUD accepts it once it has run at the required coverage, with extra exhibits and a debt service reserve if you take cash out. |
| The work is above HUD's substantial rehabilitation line (about $55,096 a unit in 2026 at a 270% area), so 223(f) repairs won't cover it. | 221(d)(4) substantial rehabilitation | |
| Ground-up construction: one loan for construction and permanent financing, up to 40 years. | 221(d)(4) new construction | |
| 223(f) needs a stabilized property, usually 85% occupied. | Not FHA yet | A bridge or construction loan to stabilization, then 223(f), is the common path. |
Two older programs fill gaps. Section 220 uses the 221(d)(4) loan ratios for projects in designated areas, which include Opportunity Zones and approved urban renewal and code enforcement areas, and it allows commercial space up to 25% of net rentable area and 30% of income (MAP Guide 3.4). Section 231 is for housing reserved for elderly or disabled residents. Both run on the same 0.25% premium since October 2025.