HUD financing for the long-term plan.

How Stonehaven helps with your HUD deal

• Review the fit: Start with the property, business plan, financing request and deadline. We help identify the relevant program and questions to resolve early.
• Structure the request: Work through the budget or operating figures, existing debt, cash requirements and supporting documents.
• Coordinate the process: We help present the financing request, review proposed terms and coordinate documentation and follow-up through underwriting and closing.

You have a point of contact at Stonehaven throughout the process. Final eligibility, terms and timing depend on underwriting, required approvals and the project.

Choose the route that matches the property

Start with fit, then size the loan

• Property: Apartment programs generally start at five rental units. That is an eligibility floor, not a promise that a five-unit loan is economical.
• Business plan: Separate an operating-property refinance from construction, major rehabilitation and a sale of individual homes.
• Income: Use supportable rents and normalized operating expenses. A large appraisal cannot replace sufficient debt service coverage.
• Sponsor: Experience, liquidity, ownership structure and management matter alongside the building.
• Timing: Reports, underwriting, HUD review and closing conditions need room in the schedule. An urgent maturity may require a separately underwritten bridge plan.

Standalone office, retail, industrial buildings and a collection of unrelated one-to-four-unit rentals do not become eligible apartment projects simply because they are commercial investments. Compare other commercial financing or DSCR rental financing when the property does not fit.

Current terms worth understanding

For covered market-rate 223(f) and 221(d)(4) transactions, current HUD guidance permits up to 87% applicable value or eligible cost with a 1.15 debt service coverage ratio. Qualifying affordable categories may reach 90% with 1.11 coverage. Eligible middle-income housing has a separate 221(d)(4) route. These are ceilings and tests, not quoted proceeds. Read HUD’s ratio update.

The lowest applicable sizing limit controls. Cash-out restrictions, per-unit statutory limits, expenses, reserves and lender underwriting can reduce available proceeds. The 87% headline does not mean an owner can automatically extract 87% of appraised value.

Covered multifamily loans have a 0.25% annual mortgage insurance premium under the notice applying to applications submitted or amended from October 1, 2025, before initial endorsement. MIP is separate from interest and upfront funding requirements. It is not a blanket reduction for already-endorsed loans or Section 232 healthcare loans. Read the final MIP notice.

A useful first review package

• Property location, unit count, current ownership and whether the request is a purchase, refinance or development.
• Requested loan, estimated value or development budget, existing debt and the real closing deadline.
• For an operating property: current rent roll, recent operating results, occupancy, concessions and planned repairs.
• For development: site control, zoning, plans, construction budget, contractor and development experience.
• Known environmental, title, insurance, affordability or operating issues. Identify them early rather than ordering reports on incomplete assumptions.

Start with a short project summary in the inquiry below. We can then explain the document collection process. Keep SSNs, bank statements and private tenant or patient information out of the public form.

Questions to resolve before choosing HUD

Is HUD only for subsidized housing?

No. Eligible market-rate apartments can qualify. Affordable and middle-income classifications have their own criteria; ordinary affordable rents do not automatically establish a special category.

Is the financing nonrecourse?

HUD-insured multifamily structures generally offer nonrecourse debt, subject to loan-document exceptions and applicable construction or completion obligations. Nonrecourse does not mean the owner has no obligations.

What does it cost and how long does it take?

Request a property-specific schedule and a written breakdown of reports, application costs, financing charges, insurance and reserves. Do not rely on a universal rate, closing-time promise or minimum loan amount.

Continue with the application checklist, leverage versus cash needed and bridge-to-HUD planning.