Reference desk

Bridge-to-HUD glossary

The essential terms behind interim and FHA-insured commercial real estate financing.

Bridge loan

Short-term financing used until a property can be sold, stabilized or refinanced with permanent debt.

FHA mortgage insurance

Federal Housing Administration insurance protecting an approved lender against qualifying mortgage losses; it is not a direct loan from HUD to the borrower.

Firm Commitment

HUD’s commitment to insure a proposed mortgage on stated terms and subject to listed conditions.

MAP

Multifamily Accelerated Processing, the framework used by approved lenders to underwrite and submit many FHA multifamily applications.

ORCF

HUD’s Office of Residential Care Facilities, which administers Section 232 healthcare-facility mortgage insurance.

Section 221(d)(4)

FHA mortgage insurance for qualifying multifamily new construction or substantial rehabilitation, including construction and permanent financing.

Section 223(f)

FHA mortgage insurance commonly used to purchase or refinance qualifying existing multifamily rental housing.

Section 232

FHA mortgage insurance for eligible residential care facilities, including nursing homes, assisted living and board-and-care facilities.

Stabilization

The process of reaching supportable occupancy, revenue, expenses and operating performance for permanent-loan underwriting.

Underwritten NOI

The lender’s estimate of sustainable net operating income after normalizing property revenue and expenses.