Tucson market context
- 223(f) is existing housing
- HUD describes 223(f) as purchase or refinance of existing multifamily rental housing. Substantial rehabilitation is not eligible under that description. HUD, 223(f) program description
- Multifamily programs overview
- HUD's multifamily programs page is the public index of these insurance programs. The Tucson page uses it to stay on 223(f) for buildings that already exist. HUD multifamily programs
- Metro placement
- Wikipedia's Tucson metropolitan area article is the market label. It does not determine HUD eligibility. Wikipedia, Tucson metropolitan area
HUD's multifamily programs page describes Section 207/223(f) as insurance on loans that purchase or refinance existing multifamily rental housing. Properties that need substantial rehabilitation are not eligible. HUD's 223(f) description says the property must contain at least five residential units with complete kitchens and baths, and it must have been completed or substantially rehabilitated at least three years before the application. The mortgage term cannot exceed 35 years, or 75 percent of the estimated remaining economic life, whichever is less. Those are HUD's program facts. They are not a quote from this office, and they are not a promise that a Tucson file will be approved at the maximum term.
The same HUD description says 223(f) insures the lender against loss and can be financed with Ginnie Mae mortgage-backed securities. Sponsors call the insurance cost MIP. This page does not print a premium. HUD also publishes value-based maximums, including 83.3 percent for market-rate projects in the description we read. That percentage is HUD's rule, not a Capital Market Funds offer, and a Tucson loan can be sized lower. Wikipedia's Tucson metropolitan area article only places the property in the Pima County market. Fannie Mae's research pages are a different capital source, useful when someone is comparing agency execution with HUD, not a HUD handbook.
The statewide HUD reading is Arizona HUD. A Phoenix comparison is Phoenix HUD. Apartments in this city are Tucson multifamily. Agency debt, which is not HUD, is agency financing. Assumption questions belong on assumable commercial mortgages. The city hub is Tucson.
Tucson 223(f) next to agency and a bank
A comparison of jobs. Not a ranking and not a rate.
| HUD 223(f) | Agency | Bank | |
|---|---|---|---|
| Who makes it | A HUD-approved lender | A DUS or Optigo lender | A bank |
| This page | Existing Tucson apartments | A different program | A different program |
| What we will not promise | A processing time | That we are the DUS lender | That we are the bank |
Existing Tucson apartments only
HUD's 223(f) write-up allows non-critical repairs that are finished within 12 months of closing, and it requires critical repairs before endorsement. It says a project that needs substantial rehabilitation, including replacement of more than one major building system, is not acceptable under this section. That is the line this Tucson page stays behind. Ground-up construction, construction-to-permanent financing, and a heavy rehab are not products offered here.
The shared description of HUD programs on this website names other sections. They are not the loan this URL is about. If someone needs a different HUD program, that is a different conversation with a HUD-approved lender, not a reason to stretch 223(f).
Who does the Tucson HUD work, and how long it takes
HUD says the sponsor works with a MAP-approved lender, or with a HUD-approved lender under traditional processing. The lender submits the exhibits. HUD reviews whether the income can repay the loan after expenses. Capital Market Funds arranges that relationship. It is not a MAP lender, it does not claim MAP or LEAN approval, and it is not a Fannie Mae DUS lender.
We will not promise a processing time. HUD's clock and the lender's clock are theirs. A page that prints a number of months would be guessing. Craig Hoebing arranges the file from Scottsdale. There is no Tucson HUD desk at this firm.
223(f) and the Tucson alternatives
| Source | When it fits |
|---|---|
| HUD / FHA | Tucson 223(f) purchase or refinance of an existing apartment property, arranged with a HUD-approved lender. |
| Fannie Mae | A Fannie Mae alternative when the Tucson community fits agency better than HUD. Delivered by a DUS lender, not by us. |
| Bank | A bank hold when the Tucson sponsor wants a portfolio loan instead of FHA insurance. |