Government-insured

FHA / HUD Loans

The longest terms and highest leverage in multifamily and healthcare finance: 221(d)(4) construction, 223(f) acquisition and refinance, and Section 232 for senior housing and healthcare. 35–40 year fully amortizing structures, non-recourse, fixed for the full term. From $3 million. Slower to close, and worth it for the right deal.

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At a glance

Indicative program terms.

Loan size	$3,000,000+ (no set maximum)
221(d)(4) · construction / sub-rehab	Up to ~87% of cost market-rate (90% affordable); interest-only during construction, then 40-year fixed, fully amortizing
223(f) · acquisition / refinance	Up to ~87% LTV market-rate (90% affordable); cash-out capped near 80%; 35-year fixed, fully amortizing
232 · healthcare / senior housing	Skilled nursing, assisted living, memory care, board-and-care; up to ~80–85% LTV by facility and sponsor type; construction and 232/223(f) refinance
Recourse	Non-recourse
Rate	Fixed for the full term; among the lowest long-term coupons in multifamily
DSCR	1.15x multifamily market-rate (1.11x affordable); ~1.45x healthcare
MIP	Annual FHA mortgage insurance premium: 0.25% for multifamily programs under the 2025 schedule; Section 232 healthcare premiums are higher
Timing	Typically several months to close; materially longer than agency or bank
Eligible assets	Market-rate, affordable, and age-restricted multifamily; licensed care facilities under Section 232

Indicative of HUD program parameters as of mid-2026; leverage and DSCR floors vary by program and affordability level. Davis-Bacon wage requirements apply to 221(d)(4) construction.

When HUD is unbeatable

For sponsors with a long hold horizon, nothing else in the market touches HUD execution: a 40-year fixed-rate, fully amortizing, non-recourse construction loan under 221(d)(4), or a 35-year fixed refinance under 223(f). No balloon. No rate reset. No refinance risk in year ten. For build-and-hold multifamily developers and permanent-capital owners, it is the terminal financing.

Senior housing and healthcare: Section 232

HUD's Section 232 program insures loans on skilled nursing, assisted living, memory care, and board-and-care facilities: new construction, substantial rehabilitation, and acquisition or refinance through 232/223(f). Processed through HUD's LEAN office, it brings the same long-term, fixed-rate, non-recourse structure to healthcare real estate, with leverage up to roughly 80–85% depending on facility and sponsor type. Independent living units are limited to a quarter of a project; purely independent senior housing generally fits multifamily programs instead. Few desks work both sides of that line. Ours does.

The trade-offs

HUD is paperwork-heavy and slow: several months from engagement to closing, third-party reports, annual audits, and Davis-Bacon wages on construction deals. Sponsors who need speed or plan to sell in three years should usually look elsewhere, and we say so on the first call. Our job is to model HUD against agency, bank, and life company alternatives so the decision is made on numbers.

Questions

Common questions.

How long does a HUD loan take to close?

Plan on several months, meaningfully longer than agency or bank executions. A 223(f) refinance typically runs four to six months; 221(d)(4) construction deals take longer because of the two-stage application. We give you a realistic timeline before you commit.

Are HUD loans only for affordable housing?

No. Market-rate apartment properties are fully eligible. Affordable and rental-assisted properties can access even higher leverage, but the core 221(d)(4) and 223(f) programs are used by market-rate sponsors every day.

What is the FHA mortgage insurance premium (MIP)?

An annual premium paid on HUD-insured loans, in exchange for the government insurance that makes the leverage and 35–40 year fixed terms possible. For multifamily programs, HUD set a single 0.25% annual MIP (plus a 0.25% upfront premium) for applications on or after October 1, 2025, replacing the prior tiered categories, including the former green discount. Section 232 healthcare premiums are set separately and run higher.

Do HUD loans work for skilled nursing and assisted living?

Yes. Section 232 insures loans on skilled nursing, assisted living, memory care, and board-and-care facilities, processed through HUD's LEAN program. Independent living units are limited to 25% of a project; purely independent senior housing generally fits multifamily programs instead.

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