HUD 221(d)(4) Loans, a Janover property
The nation's #1 source for HUD 221(d)(4) loans
Industry-leading execution for HUD 221(d)(4) multifamily construction and substantial rehabilitation financing, nationwide.
About FHA 221(d)(4) Financing
FHA 221(d)(4) is mortgage insurance for HUD-approved lenders. It is authorized by the National Housing Act (12 U.S.C. 17151 (d)(4). Guaranteed by HUD, these FHA multifamily construction loans are the multifamily industry's, "highest-leverage, lowest-cost, fixed-rate, non-recourse loan available in the business." It is also one of the best known and widely used HUD multifamily loan products on the market. Learn more →
Why HUD 221(d)(4)
Major benefits of the HUD 221(d)(4) loan.
High loan-to-value ratio (LTV)
High loan-to-value ratio (LTV) allowance means that developers can get a larger loan with less money down. For the HUD 221(d)(4) program, market rate properties can qualify with 87% LTV, affordable properties and properties with 90% or more low-income units can qualify with a huge 90% LTV.
Non-recourse
Non-recourse means that developers and investors do not have to sign a PG (personal guarantee) to take on the loan. So, if they default on their mortgage, the lender can't try to repossess their personal property to repay the loan.
Fixed-rate
Fixed-rate loans guarantee greater financial stability for investors and developers. This is because the interest rate won't go up or down during the life of the loan. Plus, these HUD multifamily construction loans have a maximum term of 40 years (43 with construction). This makes them incredibly attractive to investors.
Flexible loan size
Flexible loan size with a minimum of $4 million, and no maximum loan size. Most loans, however, are $15 million+.
LIHTC
LIHTC: These HUD multifamily loans can be used with the federal government's Low Income Housing Tax Credit (LIHTC) program for affordable properties. This can save developers and investors significant amounts of money by giving them a 10-year tax deduction (provided the property qualifies).
BSPRA
HUD multifamily construction loans allow the general contractor (GC) to turn their profit into equity, deferring it until later. This program, called Builder Sponsor Profit Risk Allowance (BSPRA), can reduce the amount of cash needed at closing.
No income limits
The FHA 221(d)(4) loan is often used to create housing for moderate-income families, the elderly, and handicapped residents who have been priced out of the rental apartment market. However, there are no income limits for the FHA's multifamily financing program.
Low MIP
FHA MIP for HUD 221(d)(4) loans is, for applications submitted or amended on or after October 1, 2025, a flat 0.25% of the loan amount due at closing and 0.25% annually for all property types, including Section 8 and LIHTC properties and Section 220 urban renewal projects (90 FR 45789). The prior tiered categories, including the 0.25% green MIP reduction, were eliminated.
Special tools for developers and investors
Special Tools for Developers and Investors
Designed to empower developers, builders, and investors, this website explains the FHA's role in multifamily construction financing. It introduces key terms, addresses FAQs and pros and cons, outlines the application process for HUD 221(d)(4) loans, explains developer fees, reviews the HUD multifamily appraisal process, and provides an easy-to-understand loan application checklist.
- HUD 221(d)(4) FAQs
- Glossary
- FAQs
- pros and cons
- developer fees
- term sheet explanation page
- HUD 221(d)(4) typical loan timetable
- HUD multifamily statutory limits
- HUD 221(d)(4) refinance guide
- application process for HUD 221(d)(4) loans
- loan application checklist
- HUD multifamily appraisal process
Third party report guides (environmental assessment, architectural, market study) and Davis Bacon wage requirements for workers, plus General contractor requirements. Our site also offers risk-free consultations with highly-qualified HUD multifamily mortgage bankers.
About Janover
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From the FAQs
Latest from the HUD 221(d)(4) desk.
Jun 14, 2019
AMI: Area Median Income in Relation to HUD 221(d)(4) Loans
Area Median Income, or AMI, is a statistic published by HUD that estimates the median wealth of households in a specific area. AMI is used to determine qualification for a variety of housing programs, including Section 8 programs, as well as to determine eligibility for LIHTC credits.
Jun 14, 2019
Can You Refinance a HUD 221(d)(4) Loan?
If you get a HUD 221(d)(4) loan to create a multifamily development, can you refinance that loan later? The answer is yes, and you can do use the HUD 223(a)(7) program to do so. The program, which is designed specifically for current HUD multifamily and healthcare borrowers to refinance their projects, offers some pretty amazing terms.
Jun 14, 2019
CNA: Capital Needs Assessment in Relation to HUD 221(d)(4) Loans
A Capital Needs Assessment (CNA), sometimes referred to as a Physical Needs Assessment (PNA) is a type of report that can help owners and developers understand how much it will cost to maintain their project over time. That way, owner/developers, lenders, and property management can work together to develop a smart budget, and can also create estimates of the life of various systems in the building (i.e. plumbing, electrical, insulation, etc.)
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