ONGOING FHA Multifamily Programs
HUD's Office of Multifamily Housing provides FHA-insured mortgage financing for construction, rehabilitation, and refinancing of rental properties with 5+ units. For-profit developers (including LLCs) are eligible.
Key Programs
| Program | Purpose | Key Features |
|---|
| Section 221(d)(4) |
New construction & substantial rehab |
40-year fixed rate · Up to 87% LTC (market) / 90% (affordable) · Single-close construction + permanent |
| Section 223(f) |
Purchase or refinancing |
Existing stabilized properties · 35-year term · Up to 85% LTV |
| Section 220 |
Urban renewal / redevelopment areas |
New construction & rehab in HUD-designated revitalization areas |
| Section 207 |
Rental housing (legacy) |
Now primarily used through 223(f) refinancing path |
| Section 232 |
Healthcare / assisted living |
Nursing homes, assisted living, board & care facilities |
| Section 241(a) |
Supplemental loans |
Additional financing for properties already insured by HUD |
Eligibility for Cloud Fronts LLC
| Requirement | Details |
|---|
| Entity Type | LLC ELIGIBLE — for-profit or nonprofit, typically single-asset bankruptcy-remote entity |
| Experience | Demonstrated multifamily development experience required |
| Financial Capacity | Must show capacity to fund equity contribution and sustain project |
| Lender | Must work with an FHA-approved lender |
Application Process
- Pre-Application Conference — Meet with local HUD Multifamily Regional office to discuss project feasibility
- Site Appraisal & Market Analysis — Submit site assessment and market study through your FHA-approved lender
- Firm Commitment Application — Full application with architectural plans, cost estimates, financial statements
- HUD Review & Approval — HUD reviews and issues firm commitment for mortgage insurance
- Closing & Construction — Close the insured loan; construction draws during building phase
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