How Long Does It Take To Close A HUD 221(d)(4) Loan

Many developers are concerned about using a HUD 221(d)4 loan since they have hear rumors how long it can to close. The facts are many transactions can close rather quickly. There are several stages to closing a HUD 221(d) loan. The first stage is a concept meeting which is an active dialogue with HUD prior to spending soft costs on a transaction. The program is staggered so not all costs are incurred at once and most costs are financeable. The paperwork and HUD communication is handled in house by the lender so the development team is not bogged down with the details required to close a HUD loan. HUD has adopted processes to streamline operations. and many transactions now take five to seven months to close. Each transaction is different and has unique complexities and subsidies so estimating processing times and expectations early in the process is key to a successful closing