Streamlined Refinancing

FHA 232 IRR (223a7) Interest Rate Reduction Refinancing

Reduce your interest rate and extend your loan term in as little as 60-90 days with streamlined FHA 232/223(a)(7) refinancing

Why Choose FHA 232 IRR?

Fast Processing

Close in 60-90 days vs 9-12 months for standard refinancing. Streamlined underwriting with minimal documentation.

Lower Costs

Reduced closing costs, no appraisal required, and lower processing fees compared to full refinancing.

Term Extension

Add up to 12 years to your remaining loan term, improving cash flow and debt service coverage.

How FHA 232 IRR Works

1

Eligibility Check

Your facility must have an existing FHA 232 or 232/223(f) insured loan. Minimum 10-year term remaining (or extension to 10 years).

2

Rate Analysis

We analyze current FHA rates vs your existing rate to calculate potential savings. Even a 0.50% reduction can save hundreds of thousands over the loan term.

3

Streamlined Application

Submit minimal documentation—most financial data is already on file with HUD from your original loan. No full appraisal required.

4

HUD Review & Closing

HUD reviews and approves the rate reduction. Close in 60-90 days and start saving immediately.

IRR vs Standard Refinancing

FeatureFHA 232 IRR (223a7)Standard Refinancing
Processing Time60-90 days9-12 months
DocumentationMinimal (streamlined)Full underwriting
AppraisalNot requiredFull appraisal required
Closing CostsLower (est. 1-2%)Higher (est. 2-4%)
Term ExtensionUp to +12 yearsFull new term (up to 35 years)
Loan AmountLimited to existing balance + costsCan increase (cash-out)
Best ForRate reduction, term extensionCash-out, major restructuring

When to Choose IRR:

  • Current rates are at least 0.50% lower than your existing rate
  • You want to close quickly (within 90 days)
  • You need to extend your loan term for better cash flow
  • You don't need to pull cash out

Potential Savings Example

Current Loan Balance
$15,000,000
Remaining Term
20 years
Current Rate
5.50%
New IRR Rate
4.75%
Annual Savings: $112,500
20-Year Savings: $2,250,000
Plus improved debt service coverage ratio and increased property value

Frequently Asked Questions

What facilities are eligible for FHA 232 IRR?

Any senior housing or healthcare facility with an existing FHA 232 or 232/223(f) insured loan is eligible, including skilled nursing, assisted living, memory care, and board & care facilities.

How much can I save with an IRR refinance?

Savings depend on the rate reduction achieved. A 0.75% rate reduction on a $10M loan saves approximately $75,000 annually. Over 20 years, that's $1.5M in interest savings.

Can I pull cash out with an IRR refinance?

No, FHA 232 IRR is a rate reduction and term extension program only. The new loan amount is limited to your existing balance plus closing costs. For cash-out refinancing, you would need a standard FHA 232/223(f) refinance.

What if rates go down further after I close?

You can refinance again with another IRR transaction. There's no limit on how many times you can use the IRR program, making it a flexible tool for ongoing rate optimization.

How does term extension work?

HUD allows term extensions up to 12 years beyond your remaining term, as long as the total term doesn't exceed 40 years or the original statutory maximum. This improves cash flow and debt service coverage.

Ready to Reduce Your Interest Rate?

Let's analyze your existing FHA 232 loan and calculate your potential savings with an IRR refinance.