What are the fees to fund a 221(d)4 project?

HUD’s programs have several fees which are paid as part of underwriting. Most of the costs are mortgageable.


  • HUD Mortgage Insurance Premium: .50-1.30% of mortgage amount.
    • This fee covers HUD’s insurance premium which is payable at closing and funds HUD’s non-recourse insurance proceeds.
    • The fee depends on the project type and meeting energy efficiency requirements.
  • HUD Exam Fee: .30 of mortgage amount
    • For construction the underwriting is completed in two phases. .15% is due at each phase.
    • Payment for HUD’s work reviewing the application.
  • HUD Inspection Fee: $5 per thousand of the mortgage amount.
    • Covers HUD’s review of construction monitoring and planning.

Overall, HUD’s fees may be more than other loans, but the long 40 year amortization and low rate reduce the impact of the fees.