HUD Loans for Multifamily & Healthcare: Core Structural Features
HUD loans finance diverse multifamily and healthcare properties through specialized products like 221(d)(4) for construction, 223(f) for stabilized acquisitions/refinances, and 232/223(f) for healthcare facilities—each tailored to the asset’s business plan.
Consistent Loan Structures Across Products
HUD maintains uniform structural advantages:
Non-recourse protection for borrowers.
Assumable with FHA approval for seamless transfers.
Terms: 30-40 years (construction adds interest-only periods).
Fully amortizing schedules matching terms (e.g., 35-year loan = 35-year amortization).
Secondary financing allowed with approval.
Fixed rates lower than conventional, Fannie/Freddie, or CMBS options.
Loan Sizing Metrics
Lenders apply DSCR, loan-to-cost (LTC), and loan-to-value (LTV) ratios, varying by product and affordability. HUD rewards low-income projects with higher leverage to promote economic development.
Key Fees to Anticipate
Borrowers face multiple upfront and ongoing costs:
Application fee (% of loan).
HUD exam/inspection fees ($ per $1,000 borrowed).
Mortgage insurance premium (MIP: upfront + annual %).
Third-party reports: market study, appraisal, plan review, Phase I environmental.
Lender origination/financing fees.
Audited annual financials (90 days post-fiscal year-end) and 12+ months of monthly reporting add compliance costs.
Standard Reserve Requirements
All HUD loans mandate escrows for:
Property taxes.
Insurance.
MIP.
Construction products add specialized reserves like contingencies.
Contact Randy Efron at randy.efron@skylatus.com for HUD financing strategies or visit Skylatus Property Capital for multifamily solutions.
