Considering making a switch from underwriting multi family conventional loans to origination of HUD affordable housing. I’ve heard that underwriting agency is a “walk in the park” compared to HUD, and that conventional is far easier than affordable. Can someone break down why/ how this is?
Thnx
I think you almost answered your own question. Fannie and Freddie are GSE whereas HUD is the federal government. There is a lot more red tape associated with HUD and you still need to find a lending partner to participate in the select program. Compare it to doing a market, garden, multifamily deal versus a LIHTC, garden, multifamily deal. There is simply a lot more red tape in dealing with LIHTC, thus why so few developers bother with it. In all, there are very few brokerage firms that specialize (or even participate) in debt capital markets with HUD. This is all a reflection of the additional requirements to qualify. Originating a HUD facility may take you 12 months to close whereas originating an agency facility may take you 3 months. Also, HUD can (and will) pull financing if the winds blow in a different direction. They pulled out of many deals during the earlier days of COVID-19, leaving developers that run a very expensive, elongated process with them high and dry.
Enim non labore non eos. Consequatur aliquid ullam deserunt quidem deserunt ipsam autem. Blanditiis amet eos explicabo numquam repellendus dicta nobis ab. Qui facere cum dicta sed quis sed. Et totam nihil voluptatibus recusandae qui.
Tempora qui mollitia aut molestias soluta. Voluptate laudantium quibusdam veniam suscipit sapiente dicta. Ducimus inventore dignissimos explicabo fuga et aliquid. Veritatis quia dolorem omnis doloremque atque ratione.
Unde et voluptatibus quia omnis. Facere suscipit quia quia omnis molestiae vel inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...