Loan Programs

Affordable Housing

Construction or Rehabilitation

Our direct HUD 221(d)(4) program provides 40 year fixed rate, non-recourse, assumable debt financing for the construction or rehabilitation of multifamily projects nationwide. Our 221(d)(4) program is an excellent way to construct projects from the ground up with the least amount of equity required, or complete substantial renovations and improvements to an existing asset. Typically if a property requires ~$35,000+ per unit in repairs, it will require the 221(d)(4) loan program for the renovation work. For repairs below this threshold, the 223(f) acquisition and refinance loan program is utilized.

Bedford Lending specializes in helping borrowers, including non-profits and Housing Authorities, who have little to no familiarity with HUD financing successfully recapitalize, renovate, or add to their housing portfolios. We are a family business that acts as a (free) consultant in addition to being a direct lender. On some transactions we have worked for years in advance before formally commencing with underwriting, to make sure our clients are headed down the right path and not unnecessarily incurring costs that would burden their properties in the future.

As an added protection, the first step in the process after our extensive due diligence, is a discussion with HUD - called a "Concept Meeting". Before any third parties are secured or money is spent, Bedford Lending prepares an extensive summary and presentation about the proposed loan, and coordinates a formal discussion with your team and HUD to discuss all assumptions. This "pre-loan committee" provides comfort before moving into the underwriting process. We also do not charge up-front, or pro-rated fees; we only receive our finance fee at time of closing. Typically, the 221(d)(4) program takes about 5-7 months to complete.

Projects do not need to use tax credits to qualify as "affordable housing". Typically the projects we finance have a HAP contract covering the majority or 100% of the units, and are only blended with tax credits if additional equity is required. We also have extensive experience overseeing and funding RAD conversions. Please view our documents located to the right of this page for more information.

Affordable projects qualify for minimum 87-90%+ LTC financing, which can be blended with grants and other equity sources to meet or exceed 100% financing and often provide a developer's fee.

Creative Solutions

Bedford Lending is a nationwide leader in providing finance solutions for affordable housing projects throughout the United States. No project is too big, small, or complex. We frequently finance loans that other lenders or institutions have difficulty completing. We have successfully worked on projects funded by, including, or requesting:

  • Section 202 Loans
  • Section 236 Loans (inc IRP Decoupling)
  • RAD Conversions
  • 9% & 4% Low Income Housing Tax Credits ( LIHTC )
  • Tax Exempt Bond Financing
  • Flex Subsidies
  • HAP Contracts

Our direct HUD programs can be used to fund capital improvements, replenish replacement reserves and to add supportive services. We also have extensive experience securing rent increases and helping with regulatory issues around the country.


  • 40 Year Fixed Rate
  • Non-Recourse
  • Assumable
  • Declining Prepayment
  • Leverage can exceed 100%
  • RAD Conversions Eligible