In one sentence
The FHA program for new construction or substantial rehabilitation of multifamily housing, combining construction and permanent financing in one insured loan.
The longer version
221(d)(4) is the construction-to-permanent workhorse of FHA multifamily: one loan funds the build and converts to a long amortizing permanent loan, all non-recourse. It carries the heaviest documentation of the common programs.
Because it spans construction and permanent phases, the exhibit list is enormous and the draw process runs for the life of construction, making process discipline essential.
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