U.S. Department of Housing & Urban Development (HUD) wants to finance more qualified opportunity zone (QOZ) projects.

Real estate investors in QOZ’s already stand to benefit from the capital gains tax deferrals permitted under the Tax Cuts and Job Act of 2017.   With its latest Notice, HUD further sweetens the deal.

For FHA insured loan applications for projects located in QOZ’s, FHA application fees are reduced.   More importantly, HUD will assign its best and brightest to process such applications, all to improve the execution and expedite loan processing.

HUD’s Section 221(d)4 loan is already one of best new construction/sub-rehab loans available in the market with up to 90% loan-to-cost financing.  However, one of the major drawbacks with HUD insured financing has been its longer processing times.  Given the signal from HUD, we expect HUD to prioritize QOZ project loan applications and significantly improve on its processing timelines.

Give us a call for more information on these benefits or how HUD financing can benefit your real estate investment.

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