Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Learn
BlogYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
About us
TeamLeadership
Get financing
Newly Published
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Jul 1 at Apartment Loans
Real Estate Mutual Funds
Explore the Janover Network
Mar 27 at Multifamily Loans
Multifamily Minute Reader Reflections: Interest Rate Outlooks
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Was This Article Helpful?
Last updated on Aug 23, 2022
2 min read

HUD 241(a) Supplemental Loans

A HUD 241(a) supplemental loan is for current HUD borrowers who want to upgrade an existing property, and can be used for expanding current buildings, buying new safety equipment, or even increasing a building's energy efficiency.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. Supplemental Financing for Current HUD Multifamily Borrowers
  2. 2021 Sample Terms For HUD 241(a) Loans
  3. Get Financing

Supplemental Financing for Current HUD Multifamily Borrowers

For borrowers who already have a HUD multifamily loan, and are looking to make improvements on their property, the HUD 241(a) Supplemental Loan is one of the better options available, if not the best. HUD 241(a) supplemental loans were specifically designed for HUD borrowers who need extra funding to upgrade an existing property. Funds from the HUD 241(a) supplemental financing program can be used for expanding buildings, increasing a property’s energy efficiency, or even buying new safety equipment. Like many HUD financing options, the 241(a) loan is fully assumable (with HUD approval) and non-recourse.

2021 Sample Terms For HUD 241(a) Loans

Size: HUD 241(a) loans are limited by the smallest of the three options below:

  • For-profits: 90% of the value of a new construction project, Non-profits: 95% of the value of a new construction project
  • The maximum insurable amount of the project, as calculated by the FHA
  • 90% of the property's net operating income (NOI), including payments for the original loan

Term: Term must be identical to the current loan; however, if there are less than 25 years left on that loan, the HUD 241(a) loan term can be expanded to 40 years

Amortization: Up to 40 years, fully amortizing

Minimum DSCR: 1.11x

Advantages:

  • Highly competitive, fixed interest rates
  • Loans are fully assumable (with FHA approval)
  • HUD 241(a) loans are non-recourse

Disadvantages:

  • Requires a variety of third-party reports, including environmental assessments, architectural and engineering reports, and full HUD/FHA appraisals
  • Requires an FHA application fee of 0.30% of the loan amount and a 0.50% FHA inspection fee
  • Requires a one-time mortgage insurance premium (MIP) at closing, and payment of monthly MIPs throughout the duration of the loan
In this article:
  1. Supplemental Financing for Current HUD Multifamily Borrowers
  2. 2021 Sample Terms For HUD 241(a) Loans
  3. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Apartment Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2023 Janover Inc. All rights reserved.