HUD Lending Surge
August 29, 2008
August 28, 2008
With the capital markets still in disarray, and many lenders queasy about lending to anything real estate-oriented, it is good to know that HUD is still around, and fast becoming a lender of choice instead of last resort. And this is before the new "Lean" program takes effect.
A case in point is the recent activity of Capital Funding Group, which arranged eight HUD loans for skilled nursing facilities that closed in late July, four of which were in Indiana and four in South Carolina, for a total of about $47 million. The company arranged four more in August for skilled nursing facilities in Arkansas and California, and this week will close several more. All of these loans have been refinancings of bridge loans made by an affiliate of Capital Funding Group. This means that in a span of just six weeks the company will have closed more than 15 HUD loans, and while we don't know if that is a record, it will certainly push the company up in the HUD rankings this year. We can't wait to see what happens when the new fast-track Lean program is fully implemented.