HUD Releases 2020 HUD Statutory Loan Limits for Multifamily Housing

U.S. Department of Housing & Urban Development (HUD) has published updated Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs and its Annual Revisions to Base City High Cost Percentage.

HUD insured loan programs offer long term, low interest rate financing for new construction and permanent financing for qualifying affordable housing and market rate apartment projects.  The popular Section 221(d)4 and 223(f) multifamily loan programs offer loan amounts up to 85%-90% LTV / LTC (80% for cash-out refinances) supported by a 1.176x – 1.11x DSCR.  However, loan proceeds available under these programs are subject to HUD’s statutory per unit lending limit caps.

The following are the published Basic Statutory Mortgage Limits for Calendar Year 2020 for Section 221(d)4 and 223(f) loan programs:

221(d)4 Multifamily New Construction & Sub-Rehab
Bedrooms Non-elevator Elevator
0 $54,628 $59,010
1 62,013 67,649
2 74,959 82,262
3 94,085 106,418
4+ 106,314 116,817

223(f) Multifamily Purchase or Refinance
Bedrooms Non-elevator Elevator
0 $54,892 $64,026
1 60,807 70,944
2 72,633 86,990
3 89,525 108,951
4+ 101,352 123,193


The statutory mortgage limits serve to limit HUD’s exposure to an individual project by capping loan proceeds on a per-unit basis. Although most projects remain unaffected, HUD’s statutory mortgage limits are increasingly becoming a factor as interest rates and cap rates have come down which have pushed up market values and supportable debt. HUD’s statutory lending limits have not kept pace as annual statutory limit adjustments are based only on changes in the Consumer Price Index.  Statutory lending limit waivers have also become more difficult to obtain based on communications with HUD. 

Additional details are provided in the formal published notices linked to above. Contact Us for more information and to learn more about HUD loan programs.


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