The HUD 223a7 program provides a streamlined process for borrowers with existing properties insured by FHA to lower their interest rate, increase the loan term and replacement reserves, and complete repairs that extend the economic viability of the project.

A new PCNA (Property Capital Needs Assessment) is required as part of the application, however borrowers are not required to secure a new appraisal, market study or environmental assessment.

Transaction costs, minor repairs and improvements can be rolled into loan and Davis-Bacon wages are not required for repairs completed as part of the loan. Additionally, money spent on repairs prior to the new loan may be included in the loan amount with HUD approval.

 Generally this program takes about 90 days to close.