The federal government may be at a standstill, but that doesn’t mean your loan application has to wait. “The government can shut down, but Cambridge will always remain open,” stated Jeffrey Davis, President and Founder of Cambridge Realty Capital. “Be it hail, snow, blizzards, or frigid Midwest winters, the company is there to address capital needs of senior housing owners and operators and put the appropriate capital in place.”

Though spoken in levity, it is nevertheless true that Cambridge is moving into the new year at full speed. Davis reports that business is brisk: Cambridge has recently taken in five new loan applications, is on the verge of closing two, and is in the process of underwriting seven more HUD loans. “The government shutdown is not impacting Cambridge’s business at all,” Davis reiterated. “We are actively chatting with clients and look forward to continuing that.”

So, what does the government shutdown mean for Cambridge’s clients? “We are still actively accepting, processing and underwriting HUD loan applications on behalf of our clients,” Davis stated. Apart from the Federal Housing Authority’s underwriting and firm commitments, there is still a great deal of work to be done on Cambridge’s part with any HUD loan application that comes across its desk before it is sent off to the FHA. That process can take several weeks.

Once HUD receives it, it’s likely that there will be a backlog and it may take longer-than-average to close the deal. However, if you’re thinking of applying for a HUD loan, “don’t put it off,” urges Davis. Doing so will only make the delay even longer. HUD processes applications in the order they receive them, so waiting for the shutdown to end would be counterproductive. Additionally, you may lose the opportunity to lock in your interest rate before it rises again.

Davis also reminds clients and potential borrowers that Cambridge provides other types of loans besides HUD. Cambridge has always been in the business of providing bridge loans and conventional real estate loans for senior living and healthcare. It is also actively involved in acquisition and private equity. “All of these activities are continuing as usual.”

Signature Bridge Loans

A Cambridge bridge loan is often a significant component of many future HUD takeouts. Cambridge created its own Signature Bridge Loan financing so that HUD borrowers can achieve additional leverage and/or a cashout to recognize appreciation that will be created from the transaction. Cambridge has been at the forefront of this for decades, and, because of this, knows the ins and outs of what can make a bridge loan work with HUD.

Cambridge has multiple capital sources for bridge loans, including its Signature Lenders, whom it has developed and worked with time and time again. Cambridge also has a portfolio of different types of lenders who are not Signature lenders. All Signature lenders and other lenders are open for business.

Conventional Loans

Many times, borrowers look for unique terms and conditions outside of the parameters of HUD funding. Cambridge addresses this need with conventional loans. Cambridge works with all types of lenders, from agency insurance companies, credit companies, private lenders and more. Each of these have their own unique benefits and attributes and each of these bring value to all relationships. All conventional lenders are in business and all conventional lenders are looking for new business.

Acquisition and Private Equity

Cambridge, along with its partners, is constantly seeking new acquisition opportunities. Cambridge participates in various forms with both existing and to-be-built transactions. With an extensive and ongoing background in commercial real estate and investment by company principals in different conventional real estate, its experience is wideheld, and Cambridge is always bringing a great deal to the transaction. This is what has helped the company to expand and acquire so much knowledge and experience in its focused activities in senior housing and investment. Additionally, Cambridge expects some exciting announcements of new capital commitment in 2019 and moving forward.

Davis sums it up like this: “We really just want to dispel any rumors or perceptions that Cambridge’s activities in senior housing are on hold until the government is at full operations again. Cambridge is running at full steam and ready to serve all borrowers.”

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