HUD 221(d)(4) Multifamily construction & substantial rehab
Build or substantially renovate an apartment community with construction-to-permanent HUD financing.
Program at a glance
- Term
- Up to 40 years after construction, fully amortizing.
- Interest
- Fixed for the loan term.
- Cost limit (LTC)
- Up to 87% of HUD-eligible cost; 90% for qualifying categories.
- Debt coverage (DSCR)
- At least 1.15×; 1.11× for qualifying categories, including MIP.
- Recourse
- Nonrecourse; completion obligations apply.
- Annual MIP
- 0.25% under the current multifamily schedule.
The lowest applicable sizing result sets the loan amount. Debt coverage compares underwritten income with loan payments, including mortgage insurance.
Documents & videos
More program documents 22 files
Construction requirements
BSPRA Credit Explained
How the credit works, eligibility and illustrative examples.
General Contractor Requirements
Financial qualifications, monthly draws, retainage, contracts and insurance.
Bonding & Assurance of Completion
Payment and performance bonds, completion assurance and letters of credit.
Construction & Rehab Escrows
Working capital, operating deficits, contingencies and escrow release requirements.
Identity of Interest Requirements
Requirements when the borrower, contractor or architect are affiliated.
Davis-Bacon Contractor Checklist
A current preparation checklist for wage determinations, payroll records and labor compliance.
HUD 221(d)(4) Firm Application Checklist
A concise client preparation list for the firm application.
HUD 221(d)(4) Pre-Application Checklist
A concise client preparation list for the pre-application.
Ownership & closing
Management Company Requirements
Qualifications, underwriting documents and management-agent insurance.
Affordability & Loan Sizing
Current sizing categories and the separate middle-income 221(d)(4) option.
Property Insurance Requirements
Coverage, evidence of insurance and lender requirements.
Financial Statements & Mortgage Credit
Borrower entities, principal review and financial statement requirements.
HUD Multifamily Regulatory Agreement (2026)
Official multifamily form for firm commitments issued on or after April 1, 2026; confirm the applicable edition with counsel.
Building Accessibility Requirements
An overview of Fair Housing Act, Section 504 and ADA considerations.
Secondary Financing
A Bedford guide to reviewing the capital structure, repayment terms and HUD requirements.
Real Estate Tax Abatements & TIFs
Bedford’s explanation of long- and short-term abatements, PILOTs and tax increment financing. Included numbers are illustrations, not a financing quote.
Underwriting Costs: What to Expect
Costs that may be due before closing and how to plan for them.
Technical reference
HUD Survey & Closing Forms
Use the correct clean forms and coordinate the survey with closing counsel.
Davis-Bacon Labor Standards Handbook (2023)
Official January 2023 handbook, retained as a dated reference. Later rules, court orders and project instructions may modify its application.
HUD Square-footage Definitions
Net rentable “paint-to-paint” and gross area definitions, with source references.
HUD Financing Questions & Answers
Direct answers drawn from the current Bedford website FAQs.
Environmental Review: What to Flag Early
Site issues and 2026 HUD changes to discuss before finalizing plans.
Loan processing timeline
Pre-qualification & concept meeting
Before application
Review rents, expenses, construction costs and the site. After engagement, we prepare a project narrative and meet with HUD to discuss the proposed financing.
Pre-app preparation
Approx. 55 days
Order the appraisal, market study where required and environmental report. Gather preliminary plans while we assemble the pre-application package.
Pre-app submission & HUD review
Approx. 55 days
Submit our underwriting and exhibits to HUD. Resolve comments and obtain an invitation to proceed to firm application, if approved.
Firm application preparation
Approx. 75 days
Complete plan and cost reviews, construction pricing, borrower and contractor financial review, survey and title work. Update reports as needed.
Firm submission & HUD commitment
Approx. 55 days
Submit the firm application and address HUD’s comments. If approved, HUD issues a firm commitment with conditions to satisfy before closing.
Rate lock & initial closing
Approx. 45 days
Coordinate the rate lock and initial closing. Construction advances, completion, cost certification and final endorsement follow.
Timing is estimated and varies by project. Eligible projects may skip pre-application with HUD approval.
Detailed Timeline (PDF) ↗