Tap to get financing
HUD 221(d)(4) Loans
Information
Loan Facts Terms, Qualifications & GuidelinesInterest RateTerm SheetHUD Multifamily LoansStatutory LimitProcessRefinanceHUD Multifamily Construction Loans
Application
Application ProcessChecklist
Resources
HUD 221(d)(4) FAQsGlossaryMultifamily Insurance
Developers
General Contractor RequirementsDeveloper Requirements & Fees3rd Party Reports & GuidelinesAppraisal ProcessMarket StudyArchitectural and Engineering ReportsDavis Bacon WagesEnvironmental Assessments
Forms
Typical Loan TimetableDetailed Operating Statement & Underwriting AnalysisEstimate of Replacement & Construction Costs
For Brokers
About
About HUD 221(d)(4) LoanContact usLeadership
(561) 556-4747
Get financing →
Newly Published
Dec 20 at HUD 221(d)(4) Loans
What Is DSCR (Debt Service Coverage Ratio)?
Jun 14 at HUD 221(d)(4) Loans
What is Underwriting?
Jun 14 at HUD 221(d)(4) Loans
What are the Benefits of Non-Recourse Loans?
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
HUD 221(d)(4) Frequently Asked Questions
2 min read

Are HUD 221(d)(4) Loans Available for Age-Restricted Communities?

If you're considering getting an FHA multifamily construction loan to build an age-restricted or senior community, it's important to understand what this type of loan does and does not allow. First, let's define "senior community"-- in the eyes of FHA/HUD, that means any community for individuals 62 years and older.

In this article:
  1. HUD 221(d)(4) Loans for Age-Restricted Communities
  2. HUD Multifamily Construction Loans Cannot Be Used for Assisted Living 
  3. To learn more about HUD 221(d)(4) loans for senior communities, fill out the form below and a HUD loan advisor will get in touch. 
  4. Related Questions
  5. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

HUD 221(d)(4) Loans for Age-Restricted Communities

If you're considering getting an FHA multifamily construction loan to build an age-restricted or senior community, it's important to understand what this type of loan does and does not allow. First, let's define "senior community"in the eyes of FHA/HUD. According to HUD, a senior community is any community for individuals 62 years and older. 

HUD Multifamily Construction Loans Cannot Be Used for Assisted Living 

The main limitation of HUD 221(d)(4) loans for senior living projects is that they must not be assisted living. This means that communal dining facilities are not allowed. So, for instance these loans do not fund traditional nursing homes. Instead, they only fund "independent living facilities," where seniors live independently in apartments, generally without any supervision from the project itself. A meal service may or may not be offered, or, it may be offered by an independently contracted company. 

Instead of using the 221(d)(4) loan, some developers decide to use the Section 231 program to help fund senior developments. However, this program has become much less popular in recent years in favor of FHA 221(d)(4) financing.  

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

Related Questions

Are HUD 221(d)(4) loans available for age-restricted communities?

Yes, HUD 221(d)(4) loans are available for age-restricted communities. However, these loans must not be used for assisted living. This means that communal dining facilities are not allowed. Instead, these loans only fund "independent living facilities," where seniors live independently in apartments, generally without any supervision from the project itself. A meal service may or may not be offered, or, it may be offered by an independently contracted company.

Instead of using the 221(d)(4) loan, some developers decide to use the Section 231 program to help fund senior developments. However, this program has become much less popular in recent years in favor of FHA 221(d)(4) financing.

What are the eligibility requirements for HUD 221(d)(4) loans?

The eligibility requirements for HUD 221(d)(4) loans include a maximum Loan-to-Value (LTV) ratio of 85% for market-rate properties, 87% for affordable properties, and 90% for properties with 90% or more low-income units. Additionally, a bonded, licensed, and insured general contractor must execute a GMP contract. The loan must also undergo an annual review and be in compliance with Davis Bacon wage requirements.

What are the benefits of HUD 221(d)(4) loans for age-restricted communities?

HUD 221(d)(4) loans offer a number of benefits for age-restricted communities. These include:

  • Low interest rates: HUD 221(d)(4) loans offer some of the lowest interest rates available for multifamily construction loans.
  • Long-term financing: HUD 221(d)(4) loans offer up to 40-year terms, allowing developers to spread out their payments over a longer period of time.
  • Flexible repayment terms: HUD 221(d)(4) loans offer flexible repayment terms, allowing developers to choose the repayment schedule that best fits their needs.
  • No prepayment penalty: HUD 221(d)(4) loans do not have a prepayment penalty, allowing developers to pay off their loan early without incurring additional costs.

For more information on HUD 221(d)(4) loans, please visit our FAQ page.

What types of projects are eligible for HUD 221(d)(4) loans?

HUD/FHA 221(d)(4) loans are eligible for the construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. These projects must have at least five residential units and can include mixed-use projects with commercial space. Source

Eligible projects for HUD 221(d)(4) loans include new construction, substantial rehabilitation, and moderate rehabilitation of multifamily rental or cooperative housing. Source

How long does it take to get approved for a HUD 221(d)(4) loan?

The HUD 221(d)(4) loan process, from initial concept to final close, takes around 46 weeks on average. For a MAP one-stage application, the process will take about 5-7 months. For a MAP two-stage application, the process is more likely to take around 8-10 months. For more information, please refer to this page and this page.

What are the interest rates for HUD 221(d)(4) loans?

HUD/FHA 221(d)(4) Loan Interest Rates: HUD/FHA 221(d)(4) Loans Have Fixed Interest Rates Throughout the life of HUD multifamily construction loans (both construction and permanent stages), interest rates remain fixed. That means that investors and developers using HUD loans can rest easy knowing that their interest rates won't suddenly rise. An early rate lock feature is available, allowing the borrower to lock the rate after preliminary underwriting. There is a 1% rate lock deposit payable at the time of rate lock, to be refunded at closing. 30 to 80-day rate lock commitments are available.

In this article:
  1. HUD 221(d)(4) Loans for Age-Restricted Communities
  2. HUD Multifamily Construction Loans Cannot Be Used for Assisted Living 
  3. To learn more about HUD 221(d)(4) loans for senior communities, fill out the form below and a HUD loan advisor will get in touch. 
  4. Related Questions
  5. Get Financing
Categories
  • FHA Multifamily Loans
  • HUD 221(d)(4) Loans
Tags
  • HUD Multifamily Construction Loans
  • FHA Multifamily Construction Loan
  • FHA Multifamily Financing
  • FHA 221(d)(4) Loan
  • HUD 221(d)(4) Loan
  • HUD 221(d)(4) for Seniors
  • HUD 221(d)(4) Age Restricted

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
HUD 221(d)(4) Loans

HUD 221(d)(4) Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-4747 
[email protected]

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.