223(a)(7) refinance estimator
A 223(a)(7) replaces a HUD-insured loan with a new HUD-insured loan, no cash out, with the term extendable up to 12 years past the old maturity. Since October 1, 2025 new FHA apartment loans pay 0.25% a year in mortgage insurance (90 FR 45789), so the premium cut alone can make a refinance at a similar rate worthwhile. Enter your loan below.
Change in monthly principal, interest and MIP (illustration)
$15,905 less a month- Now: principal, interest and MIP
- $85,160
- After: principal, interest and MIP
- $69,255
- New loan amount
- $12,356,557
- Costs rolled into the loan
- $356,557
- Months of savings to recover the costs financed
- 23
- Total payments left: now vs. after
- $25,548,098 vs. $29,087,176
- Longest term allowed
- 420 months
- Sizing check
- Enter net operating income to test the 1.11 debt service coverage limit.
Illustration only. The new rate defaults to a benchmark from HUD's file, not a quote or an offer; any terms come from a lender.
The figures above are the worked example: a $12,000,000 223(f) loan at 6.25% with 300 months left and the old 0.60% MIP, refinanced at 5.54% over 420 months (the 223(f) maximum) with 2% lender fees and $60,000 of other costs. Change any box and it recalculates.
What the estimator assumes
The new MIP is 0.25% a year, plus 0.25% up front. HUD cut every FHA apartment program to those rates for applications submitted or amended on or after October 1, 2025 (90 FR 45789, September 23, 2025). Under the schedule that applied from 2016 until then, a 223(a)(7) paid 0.50%, a 223(f) 0.60% and a 221(d)(4) 0.65%, unless the loan qualified for HUD's lower green or affordable rates; older loans may carry other rates. Your loan keeps the premium it was insured at, so check your servicer statement for the current figure.
The term can stretch up to 12 years past the current maturity, but never past the longest term the original program allows (35 years for 223(f), 40 years for 221(d)(4)) and never past 75% of the buildings' remaining useful life (12 U.S.C. 1715n(a)(7); MAP Guide 18.3.4). The estimator caps the term at the first two; the third needs an inspector.
The loan amount is the smallest of three numbers (MAP Guide 3.8.3 and 18.3.3): the original principal of the loan being refinanced; the payoff plus allowable closing costs; and the amount 90% of net operating income supports, which is a 1.11 debt service coverage ratio. Properties with more than 90% project-based Section 8 and a long contract can go to 95% (1.05). No cash comes out.
Costs. HUD's application fee for a 223(a)(7) is 0.15% of the loan, and there is no HUD inspection fee. Lender financing and placement fees are capped at 3.5% of the first $2 million and 2% above that (MAP Guide 3.1.8, 3.1.9 and 18.3.7). The default 2% here is an assumption to change, not a quote. Third-party reports, title, legal and any prepayment premium on the old note are "other costs".
Not every loan qualifies. Risk-sharing (542(b) and 542(c)) and coinsured loans can't use a 223(a)(7), and neither can a deal that needs new construction or work triggering Davis-Bacon wages (MAP Guide 3.8.1, 18.2).
Benchmark rate: 5.54% is the median note rate on HUD-insured apartment loans endorsed in the 12 months before September 30, 2026, from HUD's file. It is a starting point, not a rate anyone has offered you.
Want a real number?
Send the loan to the desk at Janover Capital. A real quote needs the servicer's payoff, the current MIP, the prepayment terms in the note and the trailing twelve months of operations.