HUD Ground Up Construction and Major Rehab Loans
HUD 221(d)(4): Long-Term, High-Leverage Financing for Multifamily Construction & Rehab
In today’s real estate market, navigating inflation, rising interest rates, and escalating construction and operating costs requires strategic financing. For experienced real estate developers, builders, rehabbers, and investors seeking stability and growth, HUD’s 221(d)(4) loan program offers unmatched benefits: long-term, fixed-rate financing at the highest leverage available in the multifamily industry.
Why Choose HUD 221(d)(4) for Your Project:
- Maximum Leverage: Up to 90% loan-to-cost (LTC) for affordable housing, or up to 85% LTC for market-rate projects, significantly reducing your upfront equity requirement and preserving liquidity.
- Long-Term Stability: Fixed rates for up to 40 years, fully amortizing—providing predictable debt service and protection from interest-rate fluctuations, enabling better cash flow and planning.
- Non-Recourse & Assumable: Your personal assets stay protected. The non-recourse structure, combined with assumable terms, enhances property marketability, offering flexibility for future sales or strategic repositioning.
- Construction-to-Permanent Financing: HUD 221(d)(4) provides a single streamlined loan covering both construction and permanent phases, eliminating the complexity and risk of securing separate construction and permanent loans.
- Interest-Only During Construction: Preserve critical cash flow during the build phase with interest-only payments.
- Green & Energy-Efficient Incentives: Achieve lower ongoing operational costs and reduced mortgage insurance premiums (MIP) by incorporating energy-efficient designs, saving money year-over-year.
Accelerate Your Project with Our Fast Track Bridge Option:
Traditional HUD construction loans can take 12+ months to fund, creating costly delays. Our Fast Track Bridge-to-HUD program allows you to quickly secure your property or start construction within just 2 to 8 weeks, bridging seamlessly into your permanent HUD financing once approved.
Private Capital Flexibility (up to $25 Million):
If your construction or rehab project demands even greater speed or customization, we also offer private money loans tailored to your unique needs—ranging from rental, acquisition, refinance, cash-out, and both cosmetic and major structural rehab.
Ready to streamline your multifamily construction or rehab project with the industry’s best financing?
Click here to schedule a call or email info@eaglecfs.com for more information.