They are based on Loan-to-Cost. (LTC) is a ratio used to determine how much of a development project will be financed by debt versus equity. LTC is defined as the value of the loan divided by the cost of the project. The Loan-to-Value (LTV) is the ratio of the value of a loan to the market value of the property, as opposed to the cost of construction for a project.  LTV is the mortgage amount divided by the appraised value of the property.
Cost Driven Mortgage Limits for HUD/FHA 221 (d)(4)
Market Rate85% Loan-to-Cost Affordable87% Loan-to-Cost 90% or Greater Rental Assistance90% Loan-to-Cost
*Note: Loan amounts in excess of $75MM have higher Debt Service Coverage Ratio (DSCR) limits and decreased Loan-to-Value (LTV) limits.