HUD 221(d) loan

Location
US
TAGS
affordable housing
finance
HUD
mortgage loan
OTHER names

The HUD 221(d) program provides financing  for the new construction or substantial rehabilitation of multifamily rental  or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

It is an FHA mortgage insurance for HUD-approved lenders. Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(4) assists private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

Eligible borrowers include public, profit-motivated sponsors, limited distribution, nonprofit cooperatives, builder-seller, investor-sponsor, and general mortgagors.

Source: HUD

HousingCount

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Shortage statistics for households earning Under 50% AMI
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75%
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4.5M
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