Loan Programs 221(d)



  • 40 Year Fixed Rate Fully Amortized
  • No Personal Liability
  • Fully Assumable
  • Rate Locked Prior to Construction


Maximum Loan is the Lesser of:

  1. 83.3% Debt Service Mortgage
    The maximum loan that can be supported by 83.3% of the projected Net Operating Income
  2. 83.3% of Replacement Cost – Defined as the Sum of:
    • Allowable Construction and Soft Costs (includes General Reuirements & Overhead)
    • 10% of Allowable Cost for Builders & Sponsers Profit & Risk Allowance
    • Land Value
    • FHA per unit Statutory Limits Adjusted for Locality


Non-mortgagable Cost

  • Operating Deficiet (Letter of Credit or Cash)
  • Offsite of Unusual Site Development cost or Demolition (Letter of Credit or Cash)
  • 2% Working Capital (Letter of Credit or Cash)
  • Contractor’s Profit if BSPRA is used



Pre-application (*HUD Review 45 days)

Exhibits include but not limited to:

  • Market Study & Appraisal Exhibits Estimating Rents & Expenses
  • Resumes of borrowers & key principals
  • Preliminary Sketch Plans, and if Substantial Rehabilitation, cost estimates & operating statements
  • Phase I Environmental Site Assessment


Firm Application (*HUD Review 45 days)

Exhibits include but not limited to:

  • All Engineering
  • Full Set of Plans and Specifications reviewed by third party
  • Contractor’s Construction cost reviewed by third party
  • Appraisal
  • Credit information on all Sponsors/Mortgagors
  • Verified working capital sufficient to meet all closing obligations including letters of credit

* 60 days if mortgage is $15 million or more