The four FHA multifamily programs that matter

Four programs cover almost every FHA-insured apartment loan. 223(f) buys or refinances an existing property. 221(d)(4) builds or substantially rehabilitates one. 223(a)(7) refinances a loan FHA already insures. 241(a) adds a second loan for improvements on top of an FHA first mortgage. All four carry a 0.25% annual mortgage insurance premium on applications since October 1, 2025.

	223(f)	221(d)(4)	223(a)(7)	241(a)
Finances	Purchase or refinance of an existing, stabilized property	New construction or substantial rehab	Refinance of an existing FHA-insured loan	Improvements or additions to a property with an FHA first mortgage
Max loan to value or cost, market rate	87% of value	87% of cost	Original principal; payoff plus costs; 90% of NOI	90% of the value of the improvements
Max, affordable or 90%+ assisted	90%	90%	same tests	same
Minimum debt service coverage	1.15 market, 1.11 affordable	1.15 market, 1.11 affordable	1.11 (1.05 heavily assisted)	1.11 combined with the first
Longest term	35 years	40 years	Up to 12 years past current maturity, within the original program’s maximum	Tied to the first mortgage
Cash out	Up to the greater of 80% of value or the cost to refinance	No	No	No
Annual MIP	0.25%	0.25%	0.25%	0.25%
Upfront MIP	0.25%	0.25% for each construction year	0.25%	0.25% for each construction year
HUD application fee	0.30%	0.30%	0.15%	0.30%
Davis-Bacon wages	No	Yes	No	Yes, unless the first is a 223(f) or 223(a)(7)

Sources: loan ratios from Mortgagee Letter 2025-03 (January 8, 2025); premiums from 90 FR 45789 (September 23, 2025); terms, fees and Davis-Bacon from the MAP Guide (2020 edition, revised March 2021), sections 3.1, 3.6, 3.7, 3.8 and 18; 223(a)(7) term from 12 U.S.C. 1715n(a)(7).

Read each one: 223(f), 221(d)(4), 223(a)(7), 241(a). Not sure which applies? The chooser asks three questions.