HUD / FHA Multifamily and Healthcare Loan Rates 2026
What the Market Is Actually Pricing
HUD and FHA multifamily loan rates in May 2026 range from 5.00% to 6.00% for stabilized acquisition and refinance under HUD 223(f) and from 5.25% to 6.25% for ground-up construction under HUD 221(d)(4), making these programs among the lowest fixed rates available in commercial real estate. The rate advantage comes bundled with full non-recourse liability, maximum leverage up to 87% LTV on affordable properties, and 35 to 40-year fully amortizing terms with no balloon risk. The tradeoff is a closing timeline of 6 to 12 months and an ongoing Mortgage Insurance Premium that adds 25 to 65 basis points annually to the effective cost of capital.
Current Rate Table
Rates shown are indicative ranges based on current market conditions. Your actual rate will depend on your specific property, leverage, and borrower profile. Contact Commercial Lending Solutions for a precise quote.
| Leverage Tier | Rate Range | Notes |
|---|---|---|
| HUD 223(f) Stabilized Multifamily Refinance or Acquisition | 5.00% to 6.00% | 35-year fixed, up to 85% LTV, fully amortizing, non-recourse |
| HUD 221(d)(4) Ground-Up Multifamily Construction | 5.25% to 6.25% | 40-year fixed permanent term plus construction period, up to 85% LTC |
| HUD 232 Assisted Living and Nursing Facility | 5.10% to 6.10% | Healthcare-specific underwriting, up to 80% LTV, fully amortizing |
| HUD 223(a)(7) HUD-to-HUD Streamline Refinance | 5.00% to 5.75% | Fastest HUD execution, existing HUD loans only, reduced underwriting |
Rates are illustrative ranges as of May 2026 and subject to change. All loan programs subject to underwriting approval. Not a commitment to lend.
What Drives HUD / FHA Multifamily and Healthcare Loan Rates
Understanding these factors helps you position your deal for the best available rate.
10-Year Treasury Benchmark
HUD and FHA multifamily rates are set at rate lock and priced relative to the 10-year Treasury yield. Lenders typically add a spread of 150 to 225 basis points over the 10-year Treasury. When Treasury yields rise, HUD rates rise with them, and when yields fall, borrowers who have not yet locked are the beneficiaries.
Mortgage Insurance Premium (MIP)
MIP is charged annually by HUD and adds 25 to 65 basis points to the all-in cost of the loan depending on program and affordability designation. Market-rate properties under HUD 221(d)(4) carry a 65 basis point MIP, while properties with meaningful affordable set-asides can qualify for a 25 basis point MIP, meaningfully improving the effective rate a borrower experiences over the loan term.
Property Type and Program
HUD 223(f) for stabilized multifamily prices tighter than HUD 221(d)(4) construction because stabilized assets carry lower completion and lease-up risk. HUD 232 for healthcare facilities sits between the two, reflecting the operational complexity of assisted living and skilled nursing underwriting. The 223(a)(7) streamline refinance typically prices at the low end because HUD already knows the asset.
Leverage and Debt Service Coverage
HUD sets maximum LTV at 85% for market-rate properties and 87% for affordable designations, but lenders will shade rates slightly higher when borrowers push to the ceiling on leverage. A loan at 70% LTV on a well-occupied property with a 1.35 or higher DSCR will clear processing faster and may attract a tighter lender spread than a loan underwritten to the 85% LTV limit.
Affordability and Green Designations
Properties qualifying under the Green MIP reduction program or carrying Low Income Housing Tax Credit (LIHTC) designations access lower MIP tiers, which directly reduces the all-in effective rate by 25 to 40 basis points. This makes HUD financing particularly compelling for affordable housing sponsors who can access the lowest available MIP bands.
Processing Track and Timeline Risk
HUD offers an expedited Lean processing track for smaller or straightforward 223(f) applications and a standard track for larger or more complex deals. Standard track processing adds 2 to 4 months to the timeline versus Lean. Lenders price rate lock fee risk differently depending on which track applies, and borrowers should underwrite rate lock extension costs into their deal economics.
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How HUD / FHA Multifamily and Healthcare Loan Compare to Alternatives
Choosing the right loan structure can mean a 100 to 300 basis point difference in your cost of capital. Here is how current rates compare across loan types.
| Loan Type | Current Rate Range | When to Use vs HUD / FHA Multifamily and Healthcare Loan |
|---|---|---|
| Agency Loans (Fannie Mae or Freddie Mac) | 5.50% to 7.00% | Agency loans close in 45 to 90 days versus 6 to 12 months for HUD, and offer more flexible prepayment and partial release structures. HUD wins on maximum term (35 to 40 years versus 30 years), higher leverage on affordable product, and full non-recourse without carve-out exposure. For market-rate stabilized multifamily where speed and prepayment flexibility matter, agency is often preferred. |
| Life Company Loans | 5.25% to 6.50% | Life companies offer competitive fixed rates and close in 60 to 90 days, but cap leverage at 65% to 70% LTV with full recourse on some executions. HUD is the clear winner on leverage and non-recourse terms. Life company loans suit low-leverage borrowers who want a quiet, relationship-driven execution without HUD's MIP or processing timeline. |
| Bank or Credit Union Permanent Loans | 6.00% to 8.00% | Regional banks and credit unions close faster than HUD and have more flexible underwriting criteria, but carry 5 to 10-year balloon maturities and partial recourse. A borrower who cannot tolerate refinance risk at balloon should seriously evaluate HUD's 35-year fully amortizing structure even at the cost of a longer close timeline. |
| Bridge Loans | 7.50% to 11.50% | Bridge financing is the path to HUD, not a substitute for it. A property that does not yet meet HUD's occupancy or DSCR minimums will need 12 to 36 months of stabilization on a bridge loan before it qualifies for a HUD 223(f) refinance. Borrowers should model the blended cost of the bridge period plus the HUD takeout when evaluating a construction or value-add deal. |
HUD / FHA Multifamily and Healthcare Loan Rates 2026: Frequently Asked Questions
What are current HUD FHA multifamily loan rates?
HUD 223(f) stabilized multifamily rates range from 5.00% to 6.00% and HUD 221(d)(4) construction rates range from 5.25% to 6.25% in May 2026. Rates are fixed at rate lock for the full 35 to 40-year loan term and move with the 10-year Treasury. The Mortgage Insurance Premium of 25 to 65 basis points annually adds to the effective all-in cost.
How long does it take to close a HUD FHA multifamily loan?
HUD multifamily loans typically take 6 to 12 months to close from application to funding. The Lean processing track for simpler 223(f) applications can close closer to 6 months, while standard-track 221(d)(4) construction loans routinely take 9 to 12 months. Borrowers must underwrite holding costs and rate lock extension fees into the transaction budget accordingly.
What is the Mortgage Insurance Premium on a HUD loan?
The HUD Mortgage Insurance Premium ranges from 25 to 65 basis points annually depending on program and affordability designation. Market-rate properties under HUD 221(d)(4) carry 65 basis points annually. Properties qualifying for affordable or green MIP reductions can pay as little as 25 basis points. MIP is paid monthly and adds directly to the loan's effective cost of capital beyond the stated interest rate.
What is the difference between HUD 223(f) and HUD 221(d)(4)?
HUD 223(f) finances the acquisition or refinance of existing stabilized multifamily properties with a 35-year fixed fully amortizing loan at up to 85% LTV. HUD 221(d)(4) finances ground-up construction or substantial rehabilitation, converting to a 40-year fixed permanent loan at completion, at up to 85% LTC. The 221(d)(4) carries higher rates and a longer processing timeline because it includes construction risk.
Are HUD FHA multifamily loans non-recourse?
Yes. HUD and FHA multifamily loans are fully non-recourse, meaning the lender's only collateral is the property itself with no personal guarantee from the borrower. Standard bad-boy carve-outs for fraud or intentional misrepresentation apply, as they do across virtually all non-recourse commercial real estate debt. This non-recourse feature is one of HUD's most valued structural characteristics for institutional borrowers.
What properties qualify for HUD 232 healthcare loans?
HUD 232 finances assisted living facilities, skilled nursing facilities, board and care homes, and intermediate care facilities. Properties must meet minimum occupancy thresholds and HUD's healthcare-specific operational and licensing requirements. Rates range from 5.10% to 6.10% in May 2026 on fully amortizing 35-year fixed terms, at up to 80% LTV, with the same non-recourse and MIP structure as other HUD programs.
What is a HUD 223(a)(7) streamline refinance?
HUD 223(a)(7) is a streamlined refinance program available exclusively to borrowers who already have an existing HUD-insured loan. It allows a rate reduction and term extension without full underwriting, using a significantly abbreviated review process. Closing timelines are 3 to 6 months versus 6 to 12 months for standard HUD executions, and rates range from 5.00% to 5.75% in May 2026, making it the fastest and lowest-friction HUD execution available.
Trevor Damyan is a commercial mortgage broker with $1B+ in loans closed and direct relationships with life insurance companies, CMBS desks, debt funds, and non-QM lenders. Rate data is compiled from active lender conversations and closed transaction experience.
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