Borrowers hear many things, but there is nothing mysterious about the type of information lenders need to process a HUD Section 232 loan.
Sampada D’silva is Managing Director for Cambridge Realty Capital Companies, one of the nation’s leading FHA-approved HUD 232 lenders, with more than $5 billion in closed senior housing/healthcare loans. She says the data needed to meet a lender’s due diligence requirements will vary depending upon the type of transaction.
But this information is readily available. Cambridge, for example, posts a comprehensive list of needed information in the Infocenter on its www.cambridgecap.com website.
“What borrowers sometimes resist is the urgency that persists when processing a HUD loan. It’s not uncommon for borrowers to feel frustrated by the process they’re counting on to provide needed funding, “she observes.
Ms. D’silva says funds for qualified borrowers are more readily available today than in the recent past, but attaining a successful outcome still requires patience. And borrowers still must be responsive to the lender’s information needs as the loan works its way through the approval process.
“Timing issues are critical. When a lender requests updated numbers or additional data, the expectation is that the information will be delivered promptly. Borrowers should be ready with at least three years of historical data, and five years is even better,” she advises.
“Just because things aren’t moving as swiftly as hoped is no reason to let enthusiasm wane. Borrowers generally find the savings realized with this funding option to be well worth the extra effort involved,” she said.
