HUD Mortgagee Letter 2026-12 opens the 221(d)(4) and 223(f) programs to communities of detached single-family homes, duplexes, and triplexes
NEW YORK, Oct. 15, 2026 /PRNewswire/ — Bravo Capital, a leading privately held commercial real estate financing platform, today announced that it is accepting Build-to-Rent (BTR) financing requests following the U.S. Department of Housing and Urban Development’s publication of Mortgagee Letter 2026-12, “Build-to-Rent” Developments Underwriting Eligibility. Effective immediately, HUD will accept applications for mortgage insurance on multifamily rental properties made up of detached single-family homes, duplexes, or triplexes.
Under the new guidance, BTR communities will be treated under the same terms and conditions as traditional multifamily rental developments, subject to specific requirements. Key provisions include:
- Eligible programs: HUD Section 221(d)(4) for new construction, and Section 223(f) for acquisition or refinancing.
- Newly built requirement for 223(f): Acquisition or refinancing under 223(f) is limited to recently constructed BTR communities, meaning properties with a certificate of occupancy dated less than three years before the HUD application is submitted.
- Property requirements: Communities must be located on a cohesive, contiguous site, developed as long-term rental housing, operated as one multifamily rental property, and professionally managed comparably to multifamily properties in the market.
Until now, BTR sponsors have relied largely on construction loans and short-term bridge debt. The new guidance gives them access to HUD’s long-term, fixed-rate, non-recourse financing. Developers can use 221(d)(4) to fund construction, and owners of recently completed communities can use 223(f) as a permanent takeout. For communities that need time to stabilize first, Bravo Capital’s Bridge-to-HUD platform offers a path to permanent HUD financing.
“Build-to-rent has become a meaningful part of the rental housing market, and until now it has largely sat outside of HUD. This guidance puts BTR communities on the same footing as traditional multifamily and opens the door to long-term, fixed-rate, non-recourse capital. We are already working with developers and owners to evaluate how their communities fit the new requirements.” – Aaron Krawitz, CEO of Bravo Capital
The full Mortgagee Letter is available at hud.gov: https://www.hud.gov/sites/default/files/hudclips/documents/2026-12hsgml.pdf
About Bravo Capital
Bravo Capital is a leading privately held commercial real estate lender headquartered at 780 Third Avenue, New York, NY. An approved HUD/FHA MAP and LEAN lender, Bravo offers a full set of HUD loan products for multifamily and healthcare properties, together with Bridge-to-HUD, preferred equity and mezzanine capital through its affiliated companies, including Bravo Property Trust. Since 2021, Bravo Capital and its affiliates have closed more than $2.5 billion in financing nationwide. For more information, visit bravocapital.com.
Media Contact
Jill Oestreicher
jill@bravocapital.com
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SOURCE Bravo Capital
