Multifamily Rentals and the HUD 221(d)(4) Loan Program
Multifamily rentals, also referred to multi-dwelling units (MDUs) are separate housing units contained in a single building or several buildings. Some examples include duplexes, triplexes, and apartment buildings. Another common example is a mixed-use building, which combines residential and commercial spaces in one structure. HUD 221(d)(4) loans can finance apartment buildings with 5+ units, as well as certain mixed-use projects with 5+ residential units, as long as commercial units are limited to 25% of the net rentable area and 15% of the underwritten effective gross income of the property (up to 30% of underwritten EGI permitted in urban renewal areas under Section 220).
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.