FHA/HUD Loans: Affordable Financing for Multifamily and Healthcare (U.S.)

FHA/HUD loans are government-insured programs designed to provide long-term, affordable financing for US multifamily and healthcare properties. With low rates, high leverage, and long amortization, these loans are ideal for new construction, acquisition, or substantial rehabilitation.

Why Choose an FHA/HUD Loan?

• Low Fixed Rates: Among the lowest in the market
• High Leverage: Up to 85% LTV for multifamily, 90% for healthcare
• Long Terms: Up to 40 years, fully amortizing
• Non-Recourse: Limits personal liability
• Government-Insured: Backed by the US Department of Housing and Urban Development (HUD)

Loan Highlights

• Eligible Uses: New construction, acquisition, refinance, or substantial rehab of multifamily or healthcare properties
• Loan Amount Range: No maximum (subject to HUD limits and property economics)
• Interest Rate: Fixed, very low
• Loan Term: Up to 40 years (plus construction period)
• Amortization: Fully amortizing
• Maximum LTV: Up to 85% (multifamily), 90% (healthcare)
• Non-Recourse: Standard for most loans
• Prepayment: Flexible options, may include penalty

Advantages

• Lowest Long-Term Rates: Save on interest over the life of the loan
• High Leverage: Finance more with less down
• Long Amortization: Lower monthly payments
• Non-Recourse: Protects personal assets
• Government-Insured: Security for lenders and borrowers

Disadvantages

• Lengthy Approval Process: More paperwork and time required
• Strict Property Standards: Must meet HUD guidelines
• Mortgage Insurance Premium (MIP): Required, adds to cost
• Replacement Reserves: Higher reserve requirements

Eligibility & Property Types

FHA/HUD loans are available for:

• Multifamily properties (5+ units)
• Affordable housing
• Senior housing
• Assisted living
• Skilled nursing facilities
• Hospitals (select programs)

Borrower requirements:

• US-based entity or individual
• Experience with property type preferred
• Strong credit and financials
• Property must meet HUD standards

Frequently Asked Questions

What is an FHA/HUD loan?

A government-insured loan program for financing, building, or renovating multifamily and healthcare properties in the US.

What are the main benefits of FHA/HUD loans?

Lowest long-term rates, high leverage, long amortization, and non-recourse.

What are the downsides?

Longer approval, strict standards, MIP, and higher reserves.

What types of properties are eligible?

Multifamily (5+ units), affordable, senior, assisted living, skilled nursing, and some hospitals.

How much can I borrow?

No set maximum; based on property economics and HUD limits.

Real Stories

“The FHA/HUD loan allowed us to build a new senior living facility with affordable, long-term financing. The process was detailed, but the terms were unbeatable.”
— Senior Housing Developer, Illinois

Ready to Take the Next Step?

Glossary

• FHA/HUD Loan: A government-insured loan for multifamily and healthcare properties. Learn more
• Non-Recourse Loan: A loan where the lender’s only remedy in case of default is to take the property, not personal assets. Learn more
• MIP (Mortgage Insurance Premium): Insurance required for FHA loans. Learn more

Build and finance with confidence. FHA/HUD loans make it possible.
Get My Free Review