FHA/HUD Multifamily Loan Rehabilitation Work Limits
If you're considering applying for a HUD 221(d)(4) loan to rehabilitate a multifamily property, it's important to realize that there are minimum FHA/HUD multifamily project size limits that must be met. Otherwise, the project won't fit into the FHA's multifamily loan guidelines-- and won't be considered large enough to be eligible for the loan.
FHA/HUD Loan Minimum Limits
In addition to the specific minimum limits of the loan in question, properties must meet one of the following requirements to qualify as ‘substantial rehabilitation' of a multifamily property. Replacements, repairs, and improvement costs for an existing property must be more than:
- 15% of the property’s replacement cost after of all work is completed OR
- $6,500 per unit as adjusted by the local HUD office OR
- Replacing two or more buildings, regardless of cost