The FHA / HUD 221(d)4 loan program provides attractive, federally insured financing for new construction and substantial rehabilitation of multifamily apartment rental development projects. The credit enhancement afforded by the FHA / HUD loan insurance program allows for the type of construction financing that is virtually unmet in the market.  Key characteristics of this 221(d)4 loan program include:

• Construction loan which converts to a fully amortizing permanent loan upon construction completion;
• Longer term / amortization (40 years);
• Low interest rate, fixed for the term of the loan;
• Higher leverage (up to 87%-90% of cost); and
• Non-recourse.

Additional details are available here: 221(d)4 Loan Program. 

Submit the information below to see how a 221(d)4 loan can benefit your project.