Costs and 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.