FHA/HUD 221(d)(4) Loans Guide

The internet's most complete source of information on HUD 221(d)(4) financing, in one place!

This website will show everything you need to know about Federal Housing Administration (FHA) multifamily construction financing insured by the US Department of Housing and Urban Development (HUD). Read, learn, reach out to us, ask questions and build market rate or affordable multifamily property with high leverage, non-recourse, fixed-rate, multifamily construction loans. 

Major Benefits of the HUD 221(d(4) Loan

  • 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 85% LTV, affordable properties with 87% LTV, and properties with 90% of more low-income units can qualify with a huge 90% LTV. 
  • Non-recourse means that developers and investors do not have to sign a PG (personal guarantee) in order to take on the loan. This means that if they default on their mortgage, the lender cannot attempt to repossess their personal property to repay the loan. 
  • Fixed-rate loans guarantee greater financial stability for investors and developers, since 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), making them incredibly attractive to investors. 
  • Flexible loan size, with a minimum of $2 million, and no maximum loan size (most loans, however, are $15 million+)

Other HUD 221(d)(4) Benefits

  • LIHTCThese HUD multifamily loans can be used with the federal government's Low Income Housing Tax Credit (LIHTC) program for affordable properties, which can save developers and investors significant money by giving them a 10-year tax deduction (provided the property qualifies.) 
  • BSPRAHUD multifamily loans allow the general contractor (GC) to turn their profit into equity, deferring it until later, using a program called Builder Sponsor Profit Risk Allowance (BSPRA), which can reduce the amount of cash needed at closing. 
  • No income limits: Although 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, there are no income limits for the FHA's multifamily financing program. 
  • Low MIP: FHA MIP for HUD 221(d)(4) loans is 0.65% for market rate properties, 0.45% for Section 8 or LIHTC properties, 0.70% Section 220 urban renewal projects, and ultra-low 0.25% green MIP is available for Energy Star-approved energy efficient development projects. 

SPECIal tools for developers and investors

Designed to empower developers, builders, and investors, this website explains the FHA's role in multifamily construction financing by introducing key terms, addressing FAQs and pros and cons, outlining the application process for HUD 221(d)(4) loans, explaining developer fees, reviewing the HUD multifamily appraisal process, and providing an easy-to-understand loan application checklist.

More HUD 221(D)(4) Resources for developers 

In addition to the tools mentioned above, our site also provides: 

Our site also offers risk free consultations with HUD multifamily loan specialists at no charge to you. Browse our site to brush up on all you need to know about multifamily construction financing, then reach out for a free quote!

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Questions about HUD 221(d)(4) financing?

Email us directly at hello@hud221d4.loan or call our toll-free number today at (855) 461-3312 to speak with a HUD/FHA-insured multifamily finance specialist. We will match you with the best lender or get you a free quote! 


Learn More about HUD221(D)(4) Financing 


FHA Multifamily financing doesn't need to be as complicated or tedious as it may have been in the past. Click the button below to speak with a HUD Multifamily construction lending specialist and get a free quote today!