In place of our usual capital markets update, here's a strategy that's gaining serious momentum:

HUD 221(d)(4) and 223(f) financing is quietly becoming one of the strongest bridge + construction solutions in the market — especially for developers squeezed by rate volatility, limited equity, and cautious lenders.

Why HUD Is Surging
With equity tighter, construction costs higher, and lenders imposing stricter metrics, many sponsors are turning to HUD for long-term, fixed, high-leverage, non-recourse execution.

HUD 221(d)(4): A De-Risked Construction Path

Perfect for ground-up or major rehab.
Key advantages:
Non-recourse w/ bad-boy carve-outs
No sponsor completion guarantees when GC and sponsor have bonding + GMAX in place.
40-year amortization + construction term
High leverage—often ~87% LTC
Single closing—construction + perm together
Soft costs + reserves financed

HUD 223(f): Low-Cost, Long-Term Debt for Stabilized Assets
Ideal for stabilized acquisitions or refinancing.
Highlights:
35-year fixed, non-recourse
High leverage (up to 85–90%+)
Attractive DSCR (≈1.176x)
Tax-efficient cash-out refi
Light value-add allowed (≈$40k/unit)
Lifecycle Strategy Developers Are Using
1️⃣ Build with 221(d)(4)
2️⃣ Season into 223(f)
3️⃣ Recycle equity into new deals

HUD isn't the fastest to close — but locking 35–40 years of fixed, high-leverage, non-recourse debt in this rate environment is often worth every minute.