FHA/HUD Multifamily


About FHA/HUD Multifamily

Capital Funding, LLC offers HUD FHA apartment loans, both affordable and market rate, as a financing option for borrowers seeking maximum leverage with fixed rates and longer terms. FHA loans are non-recourse and assumable. Capital Funding’s MAP (Multifamily Accelerated Processing) lenders are able to expedite the underwriting, processing and closing of your HUD/FHA-insured apartment loan for both for-profit and non-profit borrowers.

We Take the Complexity Out of HUD

New Construction or Substantial Rehabilitation Programs:

  • Section 221(d)(4) (For-profit borrower) & Section 221(d)(3) (Non-profit
    : Construction and permanent financing for new apartments or substantial rehabilitation of existing apartments with market rate and/or affordable rate rental properties.
  • Section 220: Construction and permanent financing for new apartments or substantial rehabilitation of a building in an urban renewal or concentrated development area; market rate and/or affordable rate rental properties. Refinance of Section 202 projects is subject to extensive requirements outlined in several notices: 2013-7, 2012-8, 201-14 and 2004-21.
  • Section 231: Elderly only, age restricted to 62+ years.

Acquisition or Refinance Programs:

  • Section 223(f): Acquisition or refinance of existing multifamily apartments including affordable or age restricted properties. This product is designed for 5+ units aged 3 years or more.

Refinance of Existing FHA Insured Loan:

  • Section 202: Refinance of existing HUD insured loan or grant.
  • Section 223(a)(7): Refinance or Acquisition of a currently insured multifamily project and /or completion of required repairs to reduce interest rate and/or extend amortization period in order to reduce risk of default.


  • Low, fixed interest rates
  • Amortization of up to 35 years (40 years for new construction/substantial rehabilitation)
  • One loan closing with construction to permanent loan
  • Fully assumable for qualified buyers
  • Negotiable pre-payment provisions
  • Minimal reporting requirements
  • Loan to value of 80%; up to 90% predicated upon program
  • No personal recourse (HUD Multifamily Non-Recourse Policy)


Loan Servicing:

Unlike most of our competitors, we also service your HUD loan, for the life of the loan. It’s what Capital Funding can do for you after your HUD loan closes that also sets us apart in building long-term client relationships. Learn more.

HUD Multifamily Eligible Borrowers

HUD’s Multifamily Housing Programs are made available through HUD’s Federal Housing Administration (FHA) Office of Multifamily Housing Programs. Eligible borrowers must be single asset/ single purpose entities and may include the following types of borrowing entities:

  • Individuals
  • Limited Liability Companies
  • Non-Profits
  • Partnerships
  • Private Corporations
  • Public Bodies and Cooperatives
  • Trusts