Processing Step Timing Responsible Comments
Desktop Underwriting 1-5 days broker/analyst gratis (most often)
Preliminary feasibility analysis 30 days broker/analyst $5,900 to $9,900 fees typical
Engage qualified lender 1-5 days broker/mortgagee $5,000 to $10,000 typical plus escrow for
third party reports
Pre-application meeting 30 days mortgagee/broker availability of mortgagee and HUD staff
Order third party reports (MAP ) 30 days analyst/appraiser depends on availability of analyst/appraiser
$30,000 typical third party report fees (if MAP)
Request for Invitation to submit 45 days mortgagee statutory response period
Prepare application 1 30 days mortgagee depends on status of engineering and other documents. Fees $3.00 per $1,000
Issue Firm Commitment Letter 45 days HUD staff statutory response period
Pre construction draw meeting 1-5 days mortgagee/HUD concurrent with issuance of Firm Commitment
Lender's rate lock (0.5 to 1.0%) 1-5 days mortgagee concurrent with issuance of Firm Commitment,
credited to fees at I.E.
Initial Endorsement (I.E.) 30 days mortgagee after issuance of Firm Commitment Letter
(Initial Loan Funding)
Audit period 60 days Auditor after construction & stabilized occupancy
Final Endorsement (F.E.) 1-10 days mortgagee/HUD after completion of 60 day audit
(permanent loan & amortization starts)
1 Varies with Sponsor's availability of engineering, and other technical data which is required as a part of the application
