Frequently Asked Questions
Bravo’s answers on HUD/FHA financing, bridge-to-HUD, mezzanine and preferred equity now sit on the page for each topic. Pick a topic, or go straight to a question.
These answers are on the HUD loan FAQ hub page.
- What is a HUD loan?
- Which HUD loan program fits my property?
- How long does a HUD loan take?
- What does a HUD loan cost?
- How much can I borrow with a HUD 223(f) loan?
- Are HUD loans non-recourse?
- What is a HUD-approved MAP lender, and why does it matter?
- What is bridge-to-HUD financing?
- Which HUD lenders actually close their commitments?
- What is the difference between a HUD-approved MAP lender and a mortgage broker?
- Can a mortgage broker process a HUD MAP loan directly?
- What is the difference between a HUD loan and a bridge loan?
- What does non-recourse mean in HUD financing?
- What can slow down a HUD MAP loan?
- What should be prepared before starting a HUD loan application?
- Which HUD requirements can reduce loan proceeds or require more cash at closing?
- What is mortgage insurance premium in HUD financing?
- How does commercial space affect HUD multifamily eligibility?
- Can HUD multifamily financing be used with LIHTC, Section 8, or affordable housing?
- What is previous participation review in a HUD multifamily loan?
- What is an identity of interest in a HUD loan?
- Why does HUD require a single-asset borrowing entity?
- What environmental review is required for a HUD multifamily loan?
- Can student housing use HUD multifamily financing?
- Can HUD multifamily loans involve secondary financing?
- How should HUD financing be compared with agency debt, bank debt, bridge loans, mezzanine financing, or preferred equity?
These answers are on the Why Bravo Capital page.
- Who is the best HUD lender for multifamily and healthcare?
- Why does a lender's closing rate matter?
- Is Bravo Capital related to Bravo Capital Texas?
- Who is Bravo Capital?
- Is Bravo Capital a HUD-approved MAP lender?
- Does Bravo Capital finance healthcare properties?
- What FHA/HUD healthcare loan programs does Bravo work with?
- Does Bravo have healthcare execution credibility?
- Does Bravo offer bridge-to-HUD financing?
- What types of properties does Bravo finance?
- What financing products does Bravo offer?
- What makes Bravo different from a larger HUD lender?
- Does Bravo work nationwide?
- Does Bravo only finance large institutional deals?
- Can Bravo provide more than one capital solution for the same sponsor?
- Does Bravo offer preferred equity?
- How can a sponsor contact Bravo?
These answers are on the HUD 223(f) guide page.
- What is a HUD 223(f) loan?
- How much can I borrow with a HUD 223(f) loan?
- How long does a HUD 223(f) loan take?
- What is the mortgage insurance premium on a HUD 223(f) loan?
- When is HUD 223(f) the right fit?
- What property types can qualify for HUD 223(f)?
- Is HUD 223(f) for acquisition, refinance, or both?
- Can HUD 223(f) be used for major renovations or repairs?
- What are Bravo’s FHA 223(f) terms?
- How long is the HUD 223(f) loan term?
- Is HUD 223(f) non-recourse?
- Is HUD 223(f) assumable?
- Can HUD 223(f) provide cash-out proceeds?
- How much commercial space is allowed in HUD 223(f)?
- What borrower structure is required for HUD 223(f)?
- What third-party reports are needed for HUD 223(f)?
- What are replacement reserves and escrows in a HUD 223(f) loan?
- How is a HUD 223(f) loan sized?
- Can HUD 223(f) finance affordable housing, Section 8, or LIHTC properties?
- What occupancy history does HUD 223(f) require?
- What can slow down a HUD 223(f) loan?
- Does Bravo offer bridge financing for properties that aren’t 223(f)-ready yet?
- When should a sponsor consider bridge-to-HUD instead of going directly to HUD 223(f)?
- What should a sponsor prepare before starting a HUD 223(f) application?
These answers are on the HUD Section 232 guide page.
- Can assisted living and memory care use HUD 232?
- What is HUD's Express Lane?
- How is HUD 232 different from HUD 223(f)?
- Does the operator matter in a HUD 232 loan?
- What is HUD 232 / LEAN healthcare financing?
- What does LEAN mean in HUD healthcare financing?
- What is the Office of Residential Care Facilities?
- What healthcare property types can use HUD 232 financing?
- Can skilled nursing facilities use HUD 232 financing?
- What is the difference between HUD 232/223(f) and HUD 232 construction or substantial rehabilitation?
- What are Bravo’s FHA 232/223(f) terms for healthcare acquisitions and refinances?
- What are the DSCR and leverage requirements for FHA 232/223(f)?
- What are Bravo’s FHA 232 terms for healthcare construction or substantial rehabilitation?
- What are the DSCR and leverage requirements for FHA 232 construction or substantial rehabilitation?
- Can HUD 232 be used for acquisition or refinance?
- Can HUD 232 be used for new construction or substantial rehabilitation?
- What third-party reports are needed for a HUD 232 healthcare loan?
- What is the difference between the owner and the operator in a HUD 232 loan?
- What operating information can matter in a HUD 232 loan?
- How do CMS star ratings or state surveys affect HUD 232 financing?
- What replacement reserves are required for HUD 232 healthcare properties?
- How does commercial space affect HUD 232 eligibility?
- How long does a HUD 232 healthcare loan take?
- What can slow down a HUD 232 / LEAN healthcare loan?
- When should a healthcare sponsor consider bridge-to-HUD before HUD 232?
- What should a sponsor prepare before starting a HUD 232 application?
- Is Bravo approved for HUD 232 / LEAN healthcare financing?
These answers are on the HUD 221(d)(4) guide page.
- Is a 221(d)(4) only for affordable housing?
- Do I need a new loan when construction ends?
- How long does a 221(d)(4) take?
- What does a 221(d)(4) cost?
- What is a HUD 221(d)(4) loan?
- When is HUD 221(d)(4) the right fit?
- What project types can qualify for HUD 221(d)(4)?
- What is substantial rehabilitation under HUD 221(d)(4)?
- How is HUD 221(d)(4) different from HUD 223(f)?
- What are Bravo’s FHA 221(d)(4) terms?
- What are the DSCR and leverage requirements for FHA 221(d)(4) loans up to $130 million?
- What are the DSCR and leverage requirements for FHA 221(d)(4) loans above $130 million?
- What third-party reports are needed for HUD 221(d)(4)?
- What does the architectural and cost review cover?
- What escrows and reserves are required for HUD 221(d)(4)?
- What is the initial operating deficit in HUD 221(d)(4)?
- How does Davis-Bacon affect HUD 221(d)(4)?
- How does commercial space affect HUD 221(d)(4) eligibility?
- What can slow down a HUD 221(d)(4) loan?
- When can a concept meeting help with HUD 221(d)(4)?
- What sponsor experience matters for HUD 221(d)(4)?
- How do market studies affect HUD 221(d)(4) underwriting?
- When should a sponsor consider bridge financing before HUD 221(d)(4)?
- What should a sponsor prepare before starting a HUD 221(d)(4) application?
These answers are on the HUD 223(a)(7) guide page.
- What is a HUD 223(a)(7) loan?
- Can I take cash out with a HUD 223(a)(7) refinance?
- How much can I borrow with a HUD 223(a)(7) loan?
- How long can the new loan term be?
- Does a HUD 223(a)(7) refinance need an appraisal?
- What does a HUD 223(a)(7) refinance cost?
- Who is HUD 223(a)(7) refinancing for?
- When is HUD 223(a)(7) the right fit?
- How is HUD 223(a)(7) different from HUD 223(f)?
- How is HUD 223(a)(7) different from HUD 221(d)(4)?
- Can HUD 223(a)(7) be used for healthcare HUD loans?
- What are Bravo’s FHA 223(a)(7) terms?
- What costs can a HUD 223(a)(7) refinance cover?
- Can HUD 223(a)(7) lower the interest rate?
- How does prepayment work for FHA 223(a)(7)?
- What third-party reports are needed for HUD 223(a)(7)?
- What escrows are required for HUD 223(a)(7)?
- How does commercial space affect HUD 223(a)(7)?
- How long does a HUD 223(a)(7) refinance take?
- Why is HUD 223(a)(7) considered streamlined?
- What can slow down a HUD 223(a)(7) refinance?
- When is HUD 223(a)(7) not the right answer?
- Can a sponsor use bridge financing before HUD 223(a)(7)?
- What should a sponsor prepare before starting a HUD 223(a)(7) refinance?
These answers are on the Bridge-to-HUD guide page.
- Who offers bridge-to-HUD financing?
- Is the HUD takeout guaranteed?
- How is bridge-to-HUD different from a regular bridge loan?
- How long is a bridge-to-HUD loan?
- What properties are eligible for bridge-to-HUD financing?
- When does bridge-to-HUD financing make sense?
- How does a bridge-to-HUD loan work?
- What are Bravo’s bridge-to-HUD loan terms?
- Are bridge-to-HUD loans interest only?
- Are bridge-to-HUD loans non-recourse?
- What guarantor support does a bridge-to-HUD loan require?
- What diligence is required for a bridge-to-HUD loan?
- What is the legal deposit on a bridge-to-HUD loan?
- What costs should a sponsor expect on a bridge-to-HUD loan?
- Can bridge financing pay for renovations or capital needs?
- What makes a property ready for a HUD exit?
- What can prevent a HUD takeout after bridge closing?
- How is bridge-to-HUD different from a HUD 223(f) loan?
- How is bridge-to-HUD different for healthcare properties?
- What should a sponsor prepare before seeking bridge-to-HUD financing?
These answers are on the Mezzanine Financing page.
- What is mezzanine financing?
- Does Bravo offer mezzanine financing?
- How is mezzanine different from a bridge loan?
- How much can I borrow with mezzanine?
- Who uses mezzanine financing?
- What properties are eligible for mezzanine financing?
- What are Bravo’s mezzanine financing terms?
- What does “up to 90% LTV and 95% LTC” mean?
- How long is the mezzanine loan term?
- Are mezzanine loans interest only?
- How is mezzanine financing secured?
- Is mezzanine financing a second mortgage?
- How is mezzanine financing different from preferred equity?
- How is mezzanine financing different from a senior mortgage?
- Does the senior lender need to approve the mezzanine loan?
- What is an intercreditor agreement?
- Is mezzanine financing non-recourse?
- What guarantor support does a mezzanine loan require?
- What fees and transaction costs should a sponsor expect on a mezzanine loan?
- What is the legal deposit on a mezzanine loan?
- What diligence is required for mezzanine financing?
- When does mezzanine financing make sense?
- Can mezzanine financing be used with a HUD loan?
- Can mezzanine financing be used for healthcare properties?
- What happens if the property underperforms?
- What should a sponsor prepare before seeking mezzanine financing?
These answers are on the Preferred Equity page.
- What is preferred equity?
- Who provides preferred equity for multifamily projects?
- What projects are eligible for Bravo preferred equity?
- What is a value-add multifamily project?
- What is a multifamily construction project?
- What capitalization does Bravo target?
- Which markets does Bravo target for preferred equity?
- What does passive LP capital mean?
- Does preferred equity require a co-GP?
- Does preferred equity give the investor control over ordinary business decisions?
- How is preferred equity different from common equity?
- How is preferred equity different from senior debt?
- Is preferred equity debt?
- When does preferred equity make sense?
- Can preferred equity reduce the amount of common equity a sponsor needs to contribute?
- What partnership economics should a sponsor expect?
- What information should a sponsor prepare for a preferred-equity request?
- What sponsor experience matters for preferred equity?
- What risks should a sponsor consider before adding preferred equity?
- Can preferred equity be used with a HUD loan?
- Can preferred equity be used for healthcare properties?
- What is the expected exit for a preferred-equity investment?
