What Are HUD Multifamily Loans?
HUD multifamily loans are FHA-insured mortgages for apartment buildings originated through HUD's MAP (Multifamily Accelerated Processing) and Lean programs. These loans offer the most favorable terms in all of commercial real estate: 35-40 year fully amortizing terms, the lowest fixed rates available, and full non-recourse.
The main programs are: HUD 223(f) for acquisition or refinance of existing apartments, HUD 221(d)(4) for new construction or substantial rehabilitation, and HUD 223(a)(7) for refinance of existing HUD loans.
The ultimate term: HUD 221(d)(4) offers a 40-year fully amortizing, non-recourse, fixed-rate loan for new construction multifamily. No other loan product in the United States matches this. The trade-off is a 6-12 month processing timeline.
Who HUD Multifamily Loans Are For
- Apartment building owners seeking the best possible long-term financing
- Developers building new multifamily (221(d)(4))
- Owners refinancing existing apartments to lock in low fixed rates (223(f))
- Existing HUD borrowers refinancing to lower rates (223(a)(7))
Key Features
223(f): 35-year term for acquisition/refinance, LTV up to 85% (90% for affordable). 221(d)(4): 40-year term for construction, LTV up to 85%. Non-recourse. Fixed rates typically the lowest in commercial lending. FHA MIP of 0.25-0.65%. Minimum loan amounts generally $2M+.