3.7.1 General Requirements

A. Section 207/223(f) insures mortgages for the purchase or refinancing of existing rental housing that may have been financed originally with conventional mortgages, equity, or with a HUD-insured loan. The use of Section 223(f) for Cooperative Multifamily Housing is described in Chapter 17. Properties requiring substantial rehabilitation are not eligible for this program. HUD requires completion of critical-life safety repairs before endorsement of the mortgage. Critical-accessibility repairs must be completed as soon as possible, although such repairs can be deferred until after endorsement when earlier completion is not possible. Non-critical repairs may be deferred until after endorsement. See Chapter 5, Section 5.1 for the definition of substantial rehabilitation and detailed requirements concerning repairs. The property must contain at least 5 residential units.