“It’s a HUD loan. Does it matter where I get it?” This is a question that Cambridge Realty Capital regularly encounters when speaking to borrowers about securing a HUD loan. However, “the provider you choose can actually make a big difference,” states Cambridge President Andrew Erkes.
Cambridge Realty Capital has been providing HUD funding since 1985 when Erkes first joined the company. By then, Cambridge was already a successful realty capital provider. Using Erkes’ extensive knowledge of and experience in HUD-insured mortgages, Cambridge branched out into the HUD market and quickly developed a reputation as one of the US’s premiere HUD providers.
Today, over 30 years later, Cambridge maintains a near 100% success rate in obtaining HUD 232 funding for its clients. Cambridge still provides a variety of funding products, including conventional debt financing and bridge loan financing. However, it is most widely known for specializing in HUD financing.
Experience is key when it comes to choosing a HUD 232 provider, but there is more to the idea of “experience” than simply having been in business for a long period of time. What sets apart an experienced HUD provider from an inexperienced one?
- The ability to anticipate potential problems and solve them before they become setbacks. “It’s common to run into issues during the application process,” says Erkes. Issues can range from inadequate documentation to mid-stream policy changes that aren’t taken into account, things that a less experienced provider might miss during the application process.
- A specific focus in skilled nursing facilities and long-term lending.
- A long history of working with skilled nursing facility owners and operators. “Cambridge understands the ‘DNA’ of owners and operators,” says Erkes. This familiarity comes from three decades of working closely and specifically with skilled nursing facility operators.”
- A demonstrated long-term history of closing loans.
- A high rate of successful loan applications. The total number of HUD loans a particular provider has closed is only part of the equation. A particular number of loan closings might sound impressive until you discover how many unsuccessful applications a provider has had in comparison. Is a 70% closure rate good enough to earn your confidence?
- A non-bureaucratic, non-institutional environment to allow for nimbleness and succinct processing in order to avoid delays and long wait times.
“Skilled nursing facility owners and operators will continue to face challenges in the future,” Erkes asserts. “An experienced provider like Cambridge can help mitigate some of the financing-related challenges through competent problem-solving and the kind of knowledge and insight that comes with decades of being in practice and a proven track record of success in obtaining HUD 232 funding on behalf of its client.”
Questions that skilled nursing facility owners should ask a potential HUD 232 loan provider:
- How long have you been providing HUD financing?
- How many HUD loans have you closed?
- What is your success rate in obtaining HUD funding for your clients?
- What kind of experience do you have in the area of working with skilled nursing facility owners?
“In a financing market that is growing ever more challenging for skilled nursing facility owners, the provider that you choose can make all the difference in the outcome,” notes Erkes. “This is true for borrowers who have never considered HUD financing before, as well as borrowers who have had unsuccessful outcomes in the past.”