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HUD Capital Needs Assessments Require a Different Kind of Approach

HUD/FHA lending has been steady during the economic storms of the past few years

HUD’s version of a Property Condition Assessment, called a Project Capital Needs Assessment (PCNA), is a much different beast than the engineering assessments required for other multifamily lenders including Fannie Mae and Freddie Mac.

Low and Slow. HUD/FHA loans will have a lower interest rate but the financing process will take longer, due to a greater level of oversight and coordination. The same goes for HUD Project Capital Needs Assessments. Because many of the integral parts of the PCNA are reliant on various sources of information, it is vital that all parties involved (including the Lender, Appraiser, and Engineering Consultant) coordinate the flow of information, which takes time.

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