Loan Programs

Multifamily 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. The 221(d)(4) program is an excellent way to construct or rehabilitate projects with the least amount of equity required out of pocket. For existing properties that need rehabilitation, the 221(d)(4) program is used when repairs exceed ~$35,000 per unit. If repairs are below this threshold, our HUD 223(f) acquisition/refinance program is typically used.

Eligible properties can secure:

  • 40 year fixed rate
  • Fully amortizing
  • Non-recourse financing.
  • Minimum 85-90% LTC 
  • Maximum 1.176x DCR Requirement
  • Declining prepayment

All HUD loans are also assumable, making HUD an excellent option for long term investment scenarios or short term holds. Unlike bank financing where a permanent loan is secured after the construction loan, with HUD the construction and permanent process is all completed with one closing, and the interest rate is locked in prior to construction, which mitigates interest rate risk during construction. Construction interest payments are also capitalized in the mortgage amount.

Typically, the 221d4 program takes about 6 months to complete, and is available nationwide. There are no borrower minimum income, net worth, or FICO requirements, and there are no affordable restrictions imposed by HUD. Properties can be 100% market rate, in any configuration (townhomes, garden style, etc). Under the program, borrowers can also utilize a variety of credits to mitigate the equity requirement which could potentially increase the LTC to 90%+ for market rate properties, and tax credits or other public grant sources can combined with HUD to provide 100%+ financing.

As an added protection, the first step in the process after our extensive due diligence, is a formal discussion with HUD - called a "Concept Meeting" before any third parties are secured or money is spent. Bedford Lending does not charge up-front, or pro-rated fees, we only receive our finance fee as part of a successful closing. 

Creative Solutions

We combine our direct HUD programs with our advisory services to arrive at finance solutions for apartment owners and developers nationwide. We are a direct lender, not a broker or intermediary. On some transactions we have worked for years in advance before 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.

We have extensive experience in underwriting and funding construction projects around the country, from 100% luxury market rate, to 100% affordable/subsidized. We would be happy to complete an analysis of your proposed project and discuss the benefits of HUD financing at your convenience. 


  • 40 Year Fixed Rate
  • Non-Recourse
  • Assumable
  • Declining Prepayment
  • 100% Market Rate Eligible
  • No Affordability Restriction