The borrower is responsible for HUD Fees.
The third-party reports listed are required prior to Firm Application submitted to HUD. They are all mortgageable, and can be reimbursed from loan proceeds at closing. The amount of the reports varies depending on the size and complexity of the project.
- Market Study
- Phase I Environmental Assessment
- Phase II Environmental
- Architectural Plans and Costs Review
After the loan sizing, the processing fee (approximately $5,000 to $10,000) along with the required third-party reports are usually collected at the time of engagement with the lender.
Financing and Permanent Placement Fees
- Up to 3.5% of the final loan amount, and payable from mortgage proceeds at closing.
The borrower is responsible for the lender financing, placement, and legal fees. These amounts vary based on the size and complexity of the transaction. These fees are paid out of the loan proceeds at closing.
The lender will need approximately 8 to 10 weeks to underwrite and review third-party reports and submit to HUD for Firm Commitment. The timing to receive a Firm Commitment will depend on the LEAN underwriting queue, and how many deals that are currently being processed at the time.
The information listed is required for the most accurate estimate for both the loan eligibility amount and costs for the loan.
Download the attached Term Sheet as a reference for eligibility, Interest Rates, Requirements, Limitations, Terms and more.