Program Overview

The 221(d)(4) program is a single construction-to-permanent loan for New Construction and Substantial Rehab of multifamily and elderly apartment properties in urban renewal areas.


Single purpose entities that can either be profit motivated or a public body.

Personal Liability

None. Loans are non-recourse.

Loan Amount

There is no maximum loan unless limited by statutory caps.


40 year term plus up to two years of construction.


85%, 87% or 90% of the replacement costs for market rate, qualified affordable or qualified rental assistance properties, respectively.

Construction-to-Permanent Feature

Permanent long term rates are locked in prior to the start of construction.

Interest Rate

Interest rates are fixed at closing. Rates are typically set lower than conventional financing due to the credit enhancement provided by FHA at closing.

Mortgage Insurance Premium

A mortgage insurance premium is paid annually based on the outstanding principal. Premiums range from between .25% and .65% depending on the project.

Interested in This Program?

Please contact us and one of our experienced loan officers will reach out to assist you.

Contact Us