What is an Appraisal?

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

An appraisal is the process of estimating the market value of a property. Appraisals for HUD 221(d)(4) loans can only be made by trained, authorized appraisers. The HUD multifamily loan appraisal process is complex, and involves examining all aspects of a property, including:

  • All sources of income from a project (including things like commercial income and laundry income)

  • The amenities provided in individual units and condition of each unit

  • Overall amenities and recreational facilities

  • Estimate of annual expenses and operating costs

  • Financial metrics, such as the value of the land, the acquisition cost, and a construction cost analysis


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.