Greystone Closes Flurry Of FHA Loans In April, Capped By Deal Closed In Just Six Months
May 18, 2016
Greystone Cuts Industry Standard Closing Time for HUD-Insured Loan by 33%
Greystone’s FHA lending group closed 13 HUD-insured loans in the month of April, including a $19 million 221(d)(4) loan to fund the acquisition and rehabilitation of a 190-unit affordable housing property in Nashville, TN. Greystone closed this loan in under six months from engagement to closing and provided an early rate lock at the time of engagement in order to mitigate the client’s concerns regarding interest rate volatility.
“We are on a mission to break the sound barrier of traditional HUD timeframes, and we continue to invest heavily in technology and process upgrades in order to enable us to do so. Many borrowers still expect a HUD loan process to take 12 to 18 months and assume that they must endure interest rate risk throughout the underwriting process, but Greystone’s ability to close the TN loan in just six months and rate lock at the time of engagement is a testament to the level of creativity and agility that we bring to bear for our clients,” said Mordecai Rosenberg, head of Greystone’s FHA lending group.
“This was not just about ‘another deal’ – the preservation of affordable housing for 190 families was dependent upon our successful execution, so, for us, failure was just not an option,” Mr. Rosenberg added.
The 221(d)(4) HUD-insured construction loan carries a 40-year term at a low, fixed interest rate. The financing funds the acquisition and substantial rehabilitation of the property in combination with tax-exempt bonds and 4% low income housing tax credits.