HUD/FHA 223(f) Loan Process
The HUD/FHA 223(f) process is much shorter than that of a 221(d)(4). After speaking with an expert from LSG Lending Advisors, we can work with you to gather the information needed for one of the MAP Approved Lenders that we have relationships with to provide a Term Sheet and Loan Analysis for you that details the costs, estimated interest rate, and maximum loan size based on Loan to Value that your project qualifies for. We will discuss the third-party reports that are required, as well as the estimated costs of them. We will work with yourself and the Lender to make sure that any questions or concerns are answered in a timely fashion. Most Lenders will be able to submit the Application to HUD for a Firm Commitment once they receive back the Third-Party reports. The reports are usually received within 30 days of ordering them, and the Lender will review them and prepare the Narrative for HUD within 30 days. HUD has up to 90 days to issue a Firm Commitment or reject the Application. The timing can vary based upon the amount of applications that the HUD office currently has in their queue. Upon receipt of a Firm Commitment, the Lender will work with you to lock your interest rate, and work with your attorney on finalizing title documentation. The Lender will work with HUD and the attorneys of the borrower to schedule a closing date for the transaction.