Loan Programs

Multifamily Housing

Construction or Rehabilitation

The HUD 221(d)(4) program provides non-recourse construction and permanent financing for multifamily properties, or substantial rehabilitation for existing multifamily properties nationwide.

Qualified properties can secure:

  • 40 year fixed rate
  • Fully amortizing
  • Non-recourse financing.
  • 85-90% LTC

HUD loans can also be assumed by investors and retain the original interest rate, making HUD an excellent option for long term investment scenarios or short term holds. Unlike bank financing where a permanent loan is secured after the construction loan, with HUD the construction to permanent is all in one, and the interest rate is locked in prior to construction, which mitigates interest rate risk in a rising rate environment. Construction interest payments are also capitalized in the mortgage amount.

Typically, the 221d4 program takes about 6 months to complete, and is available nationwide. Borrowers have no income, net worth, or FICO minimum requirements, and there are no affordable restrictions imposed by HUD. Properties can be 100% market rate, in any configuration (townhomes, garden style, etc). Under the program, borrowers can also utilize a variety of credits to mitigate the equity requirement which could potentially increase the LTC to 90%+ for market rate properties.

The first step in the process is a formal discussion with HUD - called a "Concept Meeting" before any third parties are secured or money is spent. This "pre-loan committee" provides comfort before moving into the formal underwriting process. Bedford Lending does not charge up-front, or pro-rated fees, we only receive our finance fee at successful closing.

Creative Solutions

We combine our direct HUD programs with our Advisory services to arrive at finance solutions for apartment owners and developers nationwide. We are a direct lender, not a broker or intermediary.

We have extensive experience in underwriting and funding construction projects around the country, from 100% luxury market rate, to 100% affordable/subsidized. We would be happy to complete an analysis of your proposed project and discuss the benefits of HUD financing at your convenience.