The Low-Income Housing Tax Credit (LIHTC) program, sometimes referred to as section 42, is a government initiative that encourages private investors to finance housing for low-income families and individuals. To do this, the LIHTC program provides an indirect federal subsidy in the form of a tax credit that a developer or investor can claim on their income tax return.
One of the major benefits of a HUD/FHA 221(d)(4) loans is the fact that they have incredibly competitive interest rates. But are these interest rates fixed or variable? Let's take a look.
If you're interested in getting a low-cost, non-recourse, fixed-rate loan for a multifamily real estate development, a HUD 221(d)(4) loan could be a great option. But what kind of properties can you build or renovate with this kind of loan?