Tap to get financing
HUD 221(d)(4) Loans
Information
Loan Facts Terms, Qualifications & GuidelinesInterest RateTerm SheetHUD Multifamily LoansStatutory LimitProcessRefinanceHUD Multifamily Construction Loans
Application
Application ProcessChecklist
Resources
HUD 221(d)(4) FAQsGlossaryMultifamily Insurance
Developers
General Contractor RequirementsDeveloper Requirements & Fees3rd Party Reports & GuidelinesAppraisal ProcessMarket StudyArchitectural and Engineering ReportsDavis Bacon WagesEnvironmental Assessments
Forms
Typical Loan TimetableDetailed Operating Statement & Underwriting AnalysisEstimate of Replacement & Construction Costs
For Brokers
About
About HUD 221(d)(4) LoanContact usLeadership
(561) 556-4747
Get financing →
Newly Published
Dec 20 at HUD 221(d)(4) Loans
What Is DSCR (Debt Service Coverage Ratio)?
Jun 14 at HUD 221(d)(4) Loans
What is Underwriting?
Jun 14 at HUD 221(d)(4) Loans
What are the Benefits of Non-Recourse Loans?
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
HUD & FHA Glossary
1 min read

What is FHA Mortgage Insurance?

FHA mortgage insurance protects lenders against loan default and allows them to bear less risk. If a borrower defaults on a loan, the FHA pays claims based on requirements established by FHA.

Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

FHA Mortgage Insurance and the HUD 221(d)(4) Loan Program

FHA mortgage insurance protects lenders against loan default and allows them to bear less risk. If a borrower defaults on a loan, the FHA pays claims based on requirements established by FHA.

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. 

Related Questions

What is FHA mortgage insurance?

FHA mortgage insurance protects lenders against loan default and decreases risk for lenders. In the event of default, the FHA pays claims based on FHA criteria. HUD 232 and HUD 232/223(f) loans are both insured by the FHA.

For more information, please see What is FHA Mortgage Insurance? and FHA Mortgage Insurance in Relation to HUD 232 Loans.

How does FHA mortgage insurance work?

FHA mortgage insurance works by protecting lenders against loan default and decreasing risk for lenders. In the event of default, the FHA pays claims based on FHA criteria. HUD 232 and HUD 232/223(f) loans are both insured by the FHA. For more information, please see What is FHA Mortgage Insurance? and FHA Mortgage Insurance in Relation to HUD 232 Loans.

What are the benefits of FHA mortgage insurance?

FHA mortgage insurance provides lenders with protection against loan default and decreases risk for lenders. It also pays claims in the event of default based on FHA criteria. HUD 232 and HUD 232/223(f) loans are both insured by the FHA, which provides additional benefits such as:

  • Lower down payment requirements
  • Lower closing costs
  • More flexible credit requirements
  • More lenient debt-to-income ratios

Source: What is FHA Mortgage Insurance? and FHA Mortgage Insurance in Relation to HUD 232 Loans

What are the requirements for FHA mortgage insurance?

The Federal Housing Administration (FHA) requires mortgage insurance premiums (MIPs) for all HUD 241(a) loans. In addition, an FHA application fee of 0.30% of the entire loan amount is required, as well as an FHA inspection fee of 0.50% of the loan amount. You can find more information about HUD 232 insurance requirements here and more information about HUD 241(a) loans here.

How much does FHA mortgage insurance cost?

FHA mortgage insurance costs an upfront fee of 1% of the loan principal and an annual fee of 0.95% of the loan principal. Certain projects may qualify for a reduced mortgage insurance premium, which could range from 0.25% to 0.35%.

For example, if a multifamily investor buys an apartment building using $10 million of HUD financing, that means they would owe HUD $100,000 at closing, just to cover the MIP costs. After the first year, the borrower would need to provide annual MIPs, which are a bit lower — but still significant.

You can find more information about HUD 241(a) Supplemental Financing for HUD Multifamily Loans here and Your Guide to HUD Mortgage Insurance Premiums here.

How long does FHA mortgage insurance last?

FHA mortgage insurance lasts for the life of the loan. For FHA 232/223(f) Acquisitions & Refinancing for Healthcare Properties, the loan must last a minimum of 10 years and the maximum term is 35 years or 75% of the remaining life of the facility, fully amortizing. For FHA and HUD 223(a)(7): Refinancing Existing HUD Loans, the term of the loan may be extended by up to 12 years, as long as the new term does not exceed the initial loan term — 40 years in the case of a 221(d)(4) loan and 35 years for 223(f) financing.

In this article:
  1. FHA Mortgage Insurance and the HUD 221(d)(4) Loan Program
  2. Related Questions
  3. Get Financing
Categories
  • HUD 221(d)(4) Loan
  • HUD 221(d)(4) Loans
Tags
  • HUD 221(d)(4) Loan
  • HUD 221(d)(4) Loans
  • HUD 221d4
  • HUD Multifamily Construction Loans
  • FHA Multifamily Loans
  • FHA Mortgage Insurance

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
HUD 221(d)(4) Loans

HUD 221(d)(4) Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-4747 
[email protected]

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.