Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Agency Loan Program
FHA / HUD Multifamily Loans
FHA multifamily loans, often referred to as HUD multifamily loans, are government-backed financing administered through the U.S. Department of Housing and Urban Development. They offer some of the highest leverage and longest fully amortizing fixed terms available, for acquisition, refinance, construction and substantial rehabilitation. In exchange they require a longer underwriting process and HUD compliance, so an experienced HUD lender matters. Compare today’s commercial mortgage rates.
Get a Free QuoteFHA / HUD Multifamily Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.78% | 80% |
| 7 Year Fixed | 5.74% | 80% |
| 10 Year Fixed | 5.88% | 75% |
- Government-backed through HUD
- Up to 87% LTV market-rate, up to 90% for LIHTC affordable
- Fully amortizing fixed terms up to 35 to 40 years
- Non-recourse financing
- Assumable loans
- Longer underwriting and HUD compliance, plus MIP
Rates are indicative and update with the market. HUD underwriting determines final terms.
HUD Multifamily Loan Programs
We arrange the full range of FHA-insured HUD multifamily programs, each suited to a different need:
| Program | Use | Term | Leverage / notes |
|---|---|---|---|
| HUD 223(f) | Acquisition or refinance of stabilized apartments | Up to 35 years | Up to 87-90% LTV |
| HUD 221(d)(4) | New construction or substantial rehabilitation | 40 years + construction | Up to 85% LTC |
| HUD 223(a)(7) | Streamlined refinance of existing HUD loans | Extends existing term | Lower rate, more cash flow |
| HUD 241(a) | Supplemental loans for improvements | Coterminous | Property upgrades, efficiency |
| HUD 232 | Senior housing and healthcare facilities | Up to 35 years | Assisted living, nursing, memory care |
FHA / HUD Multifamily Benefits
FHA multifamily loans, often called HUD multifamily loans, are government-backed financing administered through the U.S. Department of Housing and Urban Development. They support the acquisition, construction, refinancing and major rehabilitation of multifamily property, and offer some of the strongest terms in the market:
- Higher loan-to-value ratios and lower fixed rates than conventional multifamily
- Long-term fixed rates, with fully amortizing terms up to 35 to 40 years
- Non-recourse, so borrowers are not personally liable beyond the property
- Assumable, which can increase resale value
- Eligible for apartment buildings, assisted living and mixed-use properties with at least 85% residential space
Considerations: HUD loans require a longer approval process due to extensive underwriting and review, compliance with HUD property standards, and a mortgage insurance premium (MIP). They are limited to residential multifamily and healthcare property.
FHA / HUD Multifamily: 2026 Outlook
HUD continues to play a countercyclical role in multifamily finance, and recent underwriting updates have made its programs more useful to borrowers.
Higher leverage. Maximum LTV has moved up to around 90% for affordable developments using Low-Income Housing Tax Credits and up to about 87% for market-rate properties, among the highest leverage available anywhere.
More flexible coverage. Minimum debt-service coverage has been reduced toward roughly 1.11 to 1.15 for affordable projects, allowing higher loan amounts and improved cash flow, and a Middle-Income Housing category has been added under the construction program.
Best used for. HUD is ideal for long-term holders, affordable and workforce housing, senior and healthcare facilities, and ground-up or substantial-rehabilitation projects where the extended timeline and compliance are worth the exceptional terms.
Get Expert Guidance on Your HUD Loan
FHA and HUD loans deliver exceptional terms but require an experienced HUD lender to navigate the underwriting and compliance. With more than 30 years of experience, we help you determine whether HUD is the right fit and compare it against agency, bank and CMBS execution. There are no upfront application or processing fees, and we issue quick pre-approvals at no cost or obligation.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your FHA / HUD Rate Quote
No cost, no obligation. Written answers on multifamily loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up