Multifamily Rental Properties and the HUD 223(f) Loan Program
Multifamily rental properties, also known as multi-dwelling units or MDUs are multiple yet separate housing units in a single building or several buildings. An apartment building is one example, while other common examples include duplexes, triplexes, quadplexes, and mixed-use properties. In general, HUD 223(f) loans are only available for multifamily properties with 5+ units. HUD 223(f) loans can also be used for mixed-use properties, as long as commercial tenants do not occupy more than 25% of net rentable area and do not generate more than 20% of the project's effective gross income.