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
Jun 5 at HUD Loans
Understanding Lender Credit Boxes for Construction Loans
May 30 at HUD Loans
Post-Closing Servicing: What Developers Should Expect From Lenders
May 26 at HUD Loans
Construction Lender Red Flags: When to Walk Away
Was This Article Helpful?
HUD 221(d)(4) Frequently Asked Questions
1 min read

What type of properties are eligible for construction or rehabilitation through HUD 221(d)(4)?

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?

In this article:
  1. Property Types Eligible for HUD 221(d)(4) Loans 
  2. HUD 221(d)(4) Loans are Available for a Variety of Property Types 
  3. HUD 221(d)(4) Loans are Also Available for Single Room Occupancy (SRO) Projects 
  4. To learn more about HUD 221(d)(4) loans, fill out the form below and an HUD mortgage specialist will get in touch. 
  5. Related Questions
  6. 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!

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. 

To learn more about HUD 221(d)(4) loans, fill out the form below and an HUD mortgage specialist will get in touch. 

Related Questions

What types of properties are eligible for HUD 221(d)(4) financing?

HUD 221(d)(4) loans are available for a variety of multifamily property configurations, including 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.

What are the requirements for a property to qualify for HUD 221(d)(4) financing?

To qualify for HUD 221(d)(4) financing, a property must have a maximum Loan-to-Value (LTV) ratio of:

  • 85% for market-rate properties
  • 87% for affordable properties
  • 90% for properties with 90% or more low-income units

In addition, a bonded, licensed, and insured general contractor must execute a GMP contract and the property must undergo an annual review. The property must also be in compliance with Davis Bacon wage requirements.

Sources:

  • HUD Multifamily Construction Financing
  • HUD Multifamily Loan Guide

What types of construction and rehabilitation projects are eligible for HUD 221(d)(4) financing?

HUD 221(d)(4) financing is available for a broad spectrum of developments, including the construction or substantial rehabilitation of detached, semi-detached, walkup, row, and elevator-type multifamily properties. This includes market-rate, low-to-moderate income, and subsidized multifamily, cooperative housing, and affordable housing properties with at least five units. For more information, please see HUD 221(d)(4) Construction & Rehab Loans and What type of properties are eligible for construction or rehabilitation through HUD 221(d)(4)?

What are the benefits of HUD 221(d)(4) financing?

HUD 221(d)(4) loans offer an incredible opportunity for multifamily investors and developers to access the industry’s longest-term form of fixed-rate construction and substantial rehabilitation financing. With terms of up to 40 years (43 years with the 3-year construction period), these loans are also non-recourse, fully assumable, and offer high leverage.

In general, it’s extremely difficult for investors and developers to find financing that will cover both the construction and post-construction period for a multifamily property, all in one loan. This is especially the case since Fannie Mae and Freddie Mac do not provide financing for the construction of multifamily properties, only for property rehab, acquisition, and refinancing (and certain combinations thereof).

In most cases, multifamily investors and developers will have to take out an more expensive bank loan, which will only permit up to 75% LTC in most cases. After, they’ll need to refinance into a permanent loan, which will often come in the form of CMBS financing, Freddie Mac, Fannie Mae, or even a HUD multifamily refinancing loan, such as the HUD 223(f) loan.

The benefits of HUD 221(d)(4) financing include:

  • Long-term fixed-rate financing
  • Non-recourse
  • Fully assumable
  • High leverage
  • One loan for both construction and post-construction period

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

The eligibility requirements for HUD 221(d)(4) financing 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 and the loan must undergo an annual review. The loan must also be in compliance with Davis Bacon wage requirements and require a full scope of third party reports such as an environmental assessment, market study, and appraisal.

What is the maximum loan amount for HUD 221(d)(4) financing?

The maximum loan amount for HUD 221(d)(4) financing is not limited. According to HUD 221(d)(4) Loans, "while there is technically no financial ceiling for the program, particularly large loans are typically subject to stricter requirements". Additionally, HUD 221(d)(4) Loans states that "there is no maximum loan amount".

In this article:
  1. Property Types Eligible for HUD 221(d)(4) Loans 
  2. HUD 221(d)(4) Loans are Available for a Variety of Property Types 
  3. HUD 221(d)(4) Loans are Also Available for Single Room Occupancy (SRO) Projects 
  4. To learn more about HUD 221(d)(4) loans, fill out the form below and an HUD mortgage specialist will get in touch. 
  5. Related Questions
  6. Get Financing
Categories
  • FHA 221(d)(4) Loans
  • HUD Multifamily Loans
Tags
  • HUD 221(d)(4)
  • Multifamily Loan
  • SRO
  • Single Room Occupancy Financing
  • Detached Apartment Financing
  • Multifamily Construction Financing
  • Non-Recourse Loan

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.