HUD 223(f) Cost & Fees

hud 223 (f) costs and fees

While they do offer a variety of benefits, HUD 223(f) financing still requires developers to pay a certain amount of fees during the loan application and approval process. These include:

* $25,000 application fee: covers due diligence and third party reports
* FHA application fee: 0.30% of the total loan amount
* FHA inspection fees: 
             * $30 per unit where repairs total over $100,000, but $3,000 or less per unit
             * If required repairs are greater than $3,000 per unit, the greater of:
                    * $30 per unit or
                    * 1% of the cost of repairs
* Finance and permanent placement fees: capped at 3.50% of the loan amount and paid from mortgage proceeds
* Good-faith deposit (commitment and rate lock): 1% of the loan amount. Paid at commitment and refunded at closing
* Standard borrower closing costs: Title Fees, Lender's Legal Fees, etc. 

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