Capital One a Top Five Bank in HUD Loans
Capital One Multifamily Finance ranked fifth among lenders nationwide for loans insured under the U.S. Department of Housing and Urban Development (HUD) Section 232 program in fiscal year 2014, according to statistics released by HUD’s Office of Residential Care Facilities. Capital One Multifamily Finance closed 20 deals with a total commitment of $243,121,200 through HUD’s LEAN process, which was designed to streamline processing and approval of HUD applications.
The Section 232 program covers housing for the frail elderly including nursing homes, assisted living facilities, and board and care facilities. It may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project.
“Our top five standing reflects the quality of the expertise we’ve assembled to meet the needs of this growing sector,” says Grace Huebscher, president of Capital One Multifamily Finance.
Section 232 loans are nonrecourse, and often have lower interest rates than conventional fixed-interest loans because they are backed by HUD.
“Seniors housing is a labor-intensive, low-margin business that demands careful planning on the part of investors,” says Joshua Rosen, senior VP of originations and leader of the company’s agency healthcare lending. “The Section 232 program is a tool that they can use to lock in today’s historic low rates for as long as 35 years. The program is a key element in an overall strategy that is making it possible for the nation to care for its aging population.”