Skip to main content

In a fluctuating economy, securing financing for large-scale multifamily projects is becoming increasingly challenging. The Department of Housing and Urban Development (HUD) supports the development of multifamily communities through FHA mortgage insurance programs. These types of loans are backed by the federal government, providing more stability and lower risk of default. Below, we’re chatting about the highlights of HUD financing and why a developer should consider pursuing it.

What is HUD? HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.

Advantages of HUD:

  • Favorable interest rates and leverage
  • Non-recourse
  • Fully amoritizing
  • Negotiated prepayment penalties
  • Assumability

Basic Requirements:

  • Over 5 units
  • Minimum 85% occupancy
  • Single asset entity borrower
  • Standard non-recourse carve outs
  • Mortgage insurance premium

We hosted a webinar to talk about HUD financing alongside Lee Oller of Merchant’s Capital, Ted Waldron, an architect and third-party HUD plan reviewer, and Jesse Garland, a senior associate principal at KEPHART who has been managing HUD projects for more than five years. Watch below to learn more!

If you have questions about HUD financing or are interested in learning more, please contact us at 303-832-4474.


This is the philosophy that drives KEPHART to create thoughtful homes and communities that positively change people’s lives.

KEPHART is a nationally recognized, award-winning architectural design and planning firm with 50 years of housing expertise. Our passion for designing well-designed places to live, work, and play has driven us to create more than 500,000 homes across the country, ranging from single and multifamily homes to workforce housing, senior living, LIHTC communities, and everything in between. We have a deep bench of talented staff to design and deliver innovative and practical solutions to meet the unique requirements of every project.