What’s your experience like with HUD 223(f) Multifamily loans?
Was browsing through various products and stumbled upon HUD/FHA 223 (f) loans. Has anyone gone through with getting a HUD 223(f) loan for multifamily property? Would you do it again? 

The rate and terms seem like a home run if you plan to hold your properties long term.
[{"id": "gm1xby6", "text": "Yes if you can meet the occupancy requirements for UW they are a home run ( and LT hold ) is the goal.", "replies": [{"id": "gm2m808", "text": "Since it's FHA I assume you have to occupy one unit?", "replies": [], "depth": 2}], "depth": 1}, {"id": "gm1y2dg", "text": "We have executed quite a few HUD 223(f) loans.\n\nThey take 4-6 to put in place, therefore you almost always have to close with a bridge loan and replace it with the 223(f)  a few months after closing or you can hang out on the bridge with some I/O or complete any renovations prior to HUD.\n\nIt is s lot of paperwork, we're doing two right now.\n\nThere are also some strings attached unlike agency debt, such as a limit to only semi annual distributions, having to use s surplus cash flow calc, and you are subject to REAC ispections. Oh and an annual audit. \n\nBut it is worth it to lock in sub 2.5% debt for 35 years.", "replies": [{"id": "gm24vh9", "text": "Thanks! Great feedback. I\u2019m trying to dip my toes into commercial multifamily for the first time so trying to do all my due diligence with different types of products available.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gm2py9q", "text": "What size property do you have or are looking to acquire, and what loan amount are you anticipating?", "replies": [], "depth": 1}, {"id": "gm2rf5x", "text": "Heavy brain damage but very attractive money", "replies": [{"id": "gm2y5cd", "text": "These loans are nightmares. Back when I did mortgages, one of the top producers used to just give me these loans to do - no referral fee, nothing. It just wasn\u2019t worth his time because we were all on commission. In reality it wasn\u2019t worth my time or energy either.", "replies": [{"id": "gm3wkar", "text": "That sounds awful - I\u2019m coming from a borrowers perspective", "replies": [{"id": "gm3z3cr", "text": "Everyone that watches HGTV wants to buy a cheap house then turn it into a million dollar house by \u201cfixing it up\u201d.  But the reality of these loans is that you are required to use arms length contractors (who are going to quote on the high end because they want to be sure the project doesn\u2019t run out of money), the money has to be held in escrow then paid directly to the contractors, the work has to be up to the FHA\u2019s standard, not yours, and multiple inspections need to be done at your expense. During that you are losing a lot of the value that comes with buying a fixer upper and fixing it up.  And on top of that the loan isn\u2019t even that good compared to typical rates.\n\nThe best analogy I can use for a lot of these scenarios is hand soap.  If putting water into a handsoap dispenser made more soap for very little money, don\u2019t you think these Johnson &amp; Johnson would do that before selling it to your stupid ass? Of course they would.", "replies": [{"id": "gm63id3", "text": "That all sounds like standard practice in 100+ unit multi deals, what am I missing?", "replies": [{"id": "gm6cx6k", "text": "Well yeah if you are doing a government backed rehab loan where you are borrowing money to rehab the property it\u2019s going to suck whether it\u2019s 100 units or 2.  If you are cash poor and a rehab loan is your only option then you obviously have no other choice.  Personally I\u2019d only recommend it for a property you desperately want that is in such bad shape you can\u2019t secure conventional financing on it.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivwkz15", "text": "What is a Multifamily loan and who qualifies?", "replies": [], "depth": 1}]