HUD 221(d)(4)
HUD Multifamily Loans - The Complete Guide
HUD/FHA Multifamily Loans are underwritten, approved, and guaranteed by the Department of Housing and Urban Development (HUD) which does not provide the financing. This is done by HUD approved lenders. Qualified property types include Apartment buildings, Senior Housing (62-year-old plus), Intermediate Care, and Assisted Living Facilities. HUD Multifamily Loans have the longest fixed rate terms of 35 to 40 years, the highest LTV’s, and lowest fixed rates.
HUD 221(d)(4) Loan Rates
Terry Painter/Mortgage Banker, Author of The Encyclopedia of Commercial Real Estate Advice – Wiley Publishers, Member of the By Terry Painter/Mortgage Forbes Business Council
HUD 221(d)(4) Loan for Multifamily Construction
The HUD 221(d)(4) Loan is for new construction or substantial rehabilitation of multifamily properties of 5 units or more. Multiple residential buildings of 1 – 3-units on one or individual tax lots that are not allowed. However, multiple 4-unit buildings that are contiguous are acceptable. Mixed-use properties are accepted where the commercial space is no more than 25% of the rentable square footage or 20% of the gross rental income.
Advantages of a HUD Multifamily Loan
17 Advantages of a HUD Multifamily Loan:
| *Highest LTV at 80 – 90% | *1.176 DSCR Market Rents |
| *Cash Our for Any Reason | *1.15 DSCR Affordable Rents |
| *Unlimited Loan Size | *Same Rate Construction Roll over to Perm |
| *35 Year Fixed Rates | *No Global or Debt to Income Ratio |
| *40 Year Fixed Rate New Construction | *Assumable |
| *No Tax Returns Required |