Flexible loan size: no maximum. Majority of loans are above $15million.

Fixed rate: Interest rate will not increase during the life of the loan. The HUD construction loan has a term of 40 years with 3 years of flexibility with construction. Attracting investors.

Non-recourse: developers and investors do not have to sign a Personal Guarantee (PG). The lender cannot repossess their property to repeat the loan if they default on their mortgage.

High Loan-to-value ratio (LTV): developers can get a larger loan with less money.  To qualify, 85% LTV, properties that are affordable 87% LYV, finally properties 90% or more low-income units with a huge 90% LTV. The risker the loan the higher the LTV has of defaulting on their mortgage because of minimum equity in property. The higher the LTV means investors and developers loan can be sizable with less cash down.