Lockouts in Relation to HUD 223f Financing
Like many multifamily loans, HUD 223(f) loans have various prepayment provisions, which include certain prepayment penalties . One common prepayment provision is called a lockout, which prevents a borrower from repaying a loan at all for a specific period of time. While all prepayment provisions
Do HUD 223(f) Loans Have Prepayment Penalties?
Like many types of multifamily financing, HUD 223(f) loans typically have prepayment penalties-- fees that are charged to the borrower if they attempt to pay off the loan early. HUD 223(f) prepayment penalties are negotiable, and can vary by lender, but often include a 0-2 year lockout