HUD Loans - the downsides

[Jason Mak]

Hello Biggerpockets community,

I am in the process of refinancing a 65 units apartment in California and I have a great deal for a 223 refinanceHUD loan (3.5% for 35 years). However, I realized there are many downsides in taking a HUD Loan. I read this great article.

http://www.biggerpockets.com/articles/1332-hud-223-f-pros-and-cons

I was wondering if anyone had any experience with these loans in particularly with the annual financial audit and the annual inspection. Were they as onerous and cumbersome as people made them out to be?

We do plan on holding this property for the long term and we do have experience working with Fannie loans so we are familiar with the impound and capital reserve process.

Any honest advice or feedback would be greatly appreciated.

Thank you,

Jason