What is Amortization?

Amortization and the HUD 221(d)(4) Loan Program

Amortization is the process of paying off debt over a period of time on a fixed schedule in regular installments. For amortized loans, a large portion of the early monthly payments go toward interest. HUD multifamily loans, including the HUD 221(d)(4) loan and the HUD 223(f) loan, are fully amortizing. This means that borrowers will not need to worry about refinancing or paying large balloon payments, since the entire balance of the loan will be repaid by the end of the loan’s term.


To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.