HUD Multifamily Construction Loans 

Right now, the HUD 221(d)(4) loan is the only HUD-insured loan designed for ground-up construction of market-rate multifamily residential properties in the United States. Due to its incredibly attractive terms, the loan has become increasingly popular among developers. In many cases, the HUD 221(d)(4) program lets them save money and increases the long-term financial stability of their multifamily development projects. 

Features of the hud 221(D)(4) Multifamily Construction Loan 

HUD 221(d)(4) loans have: 

HUD 221(d)(4) Loan Eligibility and Requirements 

In addition to some of the requirements mentioned above, HUD 221(d)(4) borrowers must:

  • Have a maximum LTV of:

    • 85% for market-rate properties

    • 87% for affordable properties

    • 90% for properties with 90% or more low-income units

  • Have a bonded, licensed, and insured general contractor execute a GMP contract

Fees and Other hud 221(d)(4) information 

Developers should also understand that HUD 221(d)(4) loans: 


To learn more about HUD 221(d)(4) loans for multifamily construction and rehabilitation, fill out the form below and a HUD loan expert will get in touch.