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Fast Track Bridge HUD 223(f) Loans

Fast Track Bridge First to Win

Next to Win Big with HUD 223(f)

Grab the property with a 45-60-day, interest-only bridge loan at up to 80 % loan-to-value; once rents stabilize, roll that note into a 35-year HUD 223(f) mortgage that can reach 87 % LTV and in the low-5 % range—roughly 75-100 bps cheaper than most banks or other lenders.

Fast Track Bridge wins the deal today; then when the property is rent stabilized, a HUD take-out locks in decades of lower payments, bigger cash flow, and fresh capital you can redeploy for your next deal.

How the Two-Step Works:

Phase Timeline Lender Action Benefit to You
1 Close Fast ≈ 60 days IO bridge, SOFR + 300–450 bps, to 80 % of value. Win the deal without a rate cap or mezz equity.
2 Season Quickly 3-6 mos. Boost occupancy to ≥ 85 %; finish repairs < $15 k/unit. All diligence is HUD-spec from day one. No duplicate reports—cuts 30-45 days.
3 Rate-Lock Early mo 6-9 HUD issues Concept green-light; lender locks today’s GNMA coupon. Locks your long-term rate while Treasuries move.
4 Take-Out mo 8-12 Bridge rolls into low-5 %*, 35-yr HUD 223(f) at to 87 % LTV; cash-out to 80% of value wired at closing. Lower payment, fresh equity for the next deal.

Why Multifamily Investors Use This Stack

  • Close in two months—seller stays happy while HUD paperwork runs.

  • Bring less cash—bridge at 80% LTV, HUD refi at 87 %; conserve liquidity to keep buying.

  • Boost cash flow—swap floating bridge for 35-year amortization 75-100 bps cheaper.

  • Recycle equity—HUD allows cash-out up to 80% of current value.

  • Stay off the hook—both notes non-recourse; HUD loan fully assumable for a 0.05 % fee.

  • No location haircut—HUD sizes on six-month NOI, not metro tier, so tertiary deals still get max leverage.

  • Green upside—cut energy/water 30% and annual MIP drops to 0.25%, raising net cash flow for decades.

Fit Check List:

  • Deal size: $10 M–$100 M+ (sweet spot $25-$50 M).

  • Path to 85 % occupancy within six months.

  • Repairs: < $15 k per unit or < 15 % of value.

  • Sponsor strength: Net worth ≥ loan; liquidity ≥ 10 %.

  • Timeline tolerance: Bridge interest for 8-12 months before take-out at 5% to 5.5%*

Key Numbers at a Glance

Metric Bridge HUD 223(f)
Leverage ≤ 80 % LTV ≤ 87 % LTV
Rate SOFR + 300–450 bps Low-5 %* fixed
Term 12-18 mos. Interest Only 35 yrs amortizing
Recourse Non-recourse Non-recourse & assumable
Cash-out None Up to 80 % value

Points to Budget For

  • Up-front MIP (0.25-0.65 %) and third-party reports.

  • HUD processing 6-12 mos.; bridge interest reserve covers carry.

  • Call protection: 10-year step-down or defeasance—but loan remains assumable.

Final Take

Close fast, lock long, scale bigger.

The Fast Track Bridge-to-HUD play wins the contract today, drops your payment tomorrow, and hands you fresh cash to buy again—without personal guarantees or refinance roulette.

Ready for numbers on your deal?

Call EJ Paul (856)-353-3430, email ejpaul@eaglecfs.com, or DM me on LinkedIn for a 24-hour sizing or to schedule a time to discuss.

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