Large HUD 221(d)(4) Loans: What You Need to Know

Loan Requirements for Very Large HUD 221(d)(4) Loans 

While we mentioned in the loan facts section of this website that the minimum HUD 221(d)(4) loan is $2 million, and there is no upper limit, the reality can be a little bit more complex. While there is technically no financial ceiling for the program, particularly large loans are typically subject to stricter requirements, especially those involving DSCR and LTC

LTC and DSCR Limits for Larger HUD Multifamily Construction Loans 

For HUD multifamily construction loans larger than $40 million: 

  • The affordable DSCR limit is 1.15

  • The affordable LTC limit is 87%

  • The market DSCR limit is 1.20

  • The market LTC limit is 83.3%

For loans between $40- $70 million: 

  • The affordable DSCR limit is 1.20

  • The affordable LTC limit is 85%

  • The market DSCR limit is 1.25

  • The market LTC limit is 80%

For loans between $75- $100 million: 

  • The affordable DSCR limit is 1.25

  • The affordable LTC limit is 85%

  • The market DSCR limit is 1.30

  • The market LTC limit is 75%

This information is also shown in the table below, and is taken directly from the HUD website: 

HUD-221d4-Large-Requirements.png

HUD 221(d)(4) Loans Larger Than $100 Million 

For HUD multifamily construction loans larger than $100 million, special LTC, LTV, and DSCR requirements may apply. This is due to the additional risk that HUD/FHA is taking on by insuring a loan of this size. 


To learn more about HUD 221(d)(4) loan limits and requirements, fill out the form below and a HUD loan advisor will get in touch.