Getting a commitment is one of the largest hurdles to clear on the track to obtaining a HUD loan, and can take months. So it’s noteworthy when Cambridge Realty Capital can achieve a commitment in mere weeks. When it happens in three days from application, it’s a cause for celebration. According to Cambridge Senior Vice President Brent Holman-Gomez, “We were recently able to achieve just that for a 232/223(f) HUD loan in the express lane queue for a stand-alone memory care community.”
The HUD express lane program for long-term care facility mortgages was created as a means for fast-tracking low-risk HUD loan applications. (To qualify for the express lane, the loan amount must be 70% LTV or less with high debt service coverage.) Before the express lane program, HUD loan applications were processed on a “first-come, first-served” basis, regardless of the amount applied for or the complexity of the applicant’s circumstances. Implemented in mid-2025, the program has reduced the time from application to commitment from months to weeks, or even days, as was the case for one of Cambridge’s applicants.
The recent ending of the government shutdown has ramped up activity at Cambridge for skilled nursing (SNF) and assisted living (ALF) loans. “HUD’s standard underwriting queue offering 80% loan-to-value has expanded dramatically to more than 100 applications following the government shutdown,” Holman-Gomez noted. “Time to get a commitment there is measured in months, though improvements in that process have seen applications move quicker than historically.” The express lane program has been one such improvement.
“HUD still takes longer than a bank loan, but the process to get a commitment out of underwriting has been streamlined to deliver commitments. This has the benefit of more quickly getting customers to a place of confidence that their loan will be closed. The quick commitment gives closing confidence earlier than we’ve seen in many years,” Holman-Gomez stated.
Cambridge has various methods of allowing borrowers to access HUD-insured loans directly without the necessity of a bridge loan. When bridge loans are necessary, Cambridge has programs for transactions of $3,000,000 and up, including turnaround situations.
The bottom line: “The sooner a borrower initiates the application process, the better. Additionally, the right circumstances may mean a fast-track to commitment and, ultimately, getting the funding you need in a timely manner.”
