What is Leverage?

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

Leverage is an investment strategy using borrowed money to finance assets and increase returns. It can also refer to the amount of debt used in financing an asset. When it comes to HUD multifamily construction loans like the HUD 221(d)(4) loan, loan-to-value ratio (LTV), and loan-to-cost ratio (LTC), are some of the most important indicators of leverage that lenders look at when deciding to approve a loan.


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