What is a HUD-Approved Lender?

HUD-Approved Lenders and the HUD 221(d)(4) Loan Program

A HUD-approved lender is a lender which has been approved by HUD to offer HUD 221(d)(4) and other FHA-insured home loans. Not every lender is HUD approved to make these loans. In order to be approved to make HUD multifamily loans, lenders must meet certain guidelines, including having a certain net worth, having a sufficient amount of errors and omissions insurance, and sending all of their underwriters to be specially trained in the HUD multifamily underwriting process.

Some HUD multifamily lenders are also approved for MAP, or Multifamily Accelerated Processing. This is a streamlined loan application process that reduces the amount of paperwork needed and the time it takes to close a loan. Lenders who are not MAP-approved must submit their clients’ loan applications through TAP, or Traditional Application Processing.

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.