The HUD 221(D)(4) Application Approval Timeline
Just how long does it take to process an HUD 221(d)(4) loan? That depends. For a MAP one-stage application, the process will take about 5-7 months. In contrast, for a MAP two-stage application, the process is more likely to take around 8-10 months.
What is MAP?
MAP, or the Multifamily Accelerated Processing Guide, is a HUD loan processing guide intended to reduce the time it takes for a loan to get approved. To do this, the HUD created a more standardized system of documentation, and gave slightly more responsibility to designated MAP lenders.
One-Stage vs. Two-Stage MAP Applications
If you're considering getting an HUD 221(d)(4) loan for a new construction, it will pretty much always be a two-stage application. Faster, one-stage application processing is reserved for market-rate properties that will undergo rehabilitation, but won't undergo:
Major unit reconfiguration
Tenant displacement (except for short durations)
Reduction in current occupancy
Negative cash flow
MAP one-stage processing is also available for properties that are affordable or rental-assisted.