HUD 221D4 vs Conventional for New Build

[Colton T.]

I've designed a new build apartment project with plans to do HUD 221D4 financing. I'm curious to see if another developer / investor has experienced the different sides of working through a deal with HUD vs Conventional financing. How would you compare your cash flow / resale challenges / bottom line between the two?

Are the benefits of a 221d4's smaller down payment, fix 35 yr assumable and being non-recourse worth it? Or better to pony up the dough and skip the extra red tape / oversight?