Bravo Capital has moved to capitalize on this regulatory shift, announcing it is immediately accepting financing requests for build-to-rent projects. The change allows developers to utilize Section 221(d)(4) programs for new construction and Section 223(f) for the acquisition or refinancing of recently completed assets. To qualify for these federal programs, properties must function as cohesive, professionally managed rental communities on contiguous sites. For acquisitions, the certificate of occupancy must be less than three years old.
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Bravo Capital Pivots to Build-to-Rent Financing Under New HUD Rules
The U.S. Department of Housing and Urban Development has issued Mortgagee Letter 2026-12, officially extending mortgage insurance eligibility to build-to-rent communities. By classifying detached single-family homes, duplexes, and triplexes under the same underwriting standards as traditional multifamily properties, federal regulators have cleared a path for long-term, non-recourse financing in this sector.
This policy change addresses a long-standing hurdle for developers who previously relied on short-term bridge debt or construction loans. By providing access to HUD’s fixed-rate, long-term capital, the guidance aligns build-to-rent assets with conventional apartment financing. Aaron Krawitz, CEO of Bravo Capital, noted that the industry had previously operated on the periphery of HUD programs. His firm is now deploying its Bridge-to-HUD platform to assist owners in transitioning stabilized communities into permanent federal financing structures.
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