What is an Interest-Only Fixed Rate Loan?

Interest-Only Fixed Rate Loans and the HUD 221(d)(4) Loan Program

An interest-only fixed-rate loan is a fixed-rate mortgage which the borrowers pays only interest and nothing towards the principal. When it comes to HUD 221(d)(4) loans, interest-only fixed-rate loans are offered during an up to 3-year period during the construction or substantial rehabilitation of a property. HUD 232 construction loans for senior living developments also offer interest-only fixed rate periods, however, HUD 223(f) loans do not.

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.