Property Types Eligible for HUD 221(d)(4) Loans
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 HUD multifamily loan?
HUD 221(d)(4) Loans are Available for a Variety of Property Types
HUD 221(d)(4) loans are available for a variety of multifamily property configurations. These include row homes, walkup apartments, detached, semi-detached, and elevator-type multifamily properties. This includes market rate and low-to-moderate income housing, subsidized affordable housing properties and multifamily, cooperative housing with a minimum of 5 units.
HUD 221(d)(4) Loans are Also Available for Single Room Occupancy (SRO) Projects
In addition to the property types listed above, Section 221(d)(4) program also insures mortgages for multifamily developments with single-room occupancy (SRO) apartments. These developments are intended for individuals who "have a source of income but are priced out of the rental apartment market." While the federal government does not provide subsidies for SRO properties, these projects often get assistance from local governments, charities, or other organizations.