When Your Local Bank Doesn’t Deliver

Many developers have long established relationships with their local bank and expect great terms when they require a construction loan. Unfortunately, many local banks have risk mitigation limitations on the number of construction loans they can hold on their balance sheet and do not deliver the terms developers expect. HUD’s 221(d)(4) is available to provide financing when your local bank can’t deliver. The high leverage (up to 90%), low rate and long term (40 year perm) allow many transactions which do not pencil to cash flow. When your project seems to have hit a road block with your local bank, HUD’s 221(d)(4) program can provide the financing your project requires.

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