Untrended Rents HUD 223(f) Loans

What are Untrended Rents?

What are Untrended Rents?

Untrended rents are projected rents that are not based on market-driven rent increases. In contrast to trended rents, untrended rents assume no growth in annual rents. While it's true that rents are growing in most areas in the United States, using untrended rents in projections is a safer and more conservative way to calculate the future financial position of a multifamily property investment.

What is Underwriting?

What is Underwriting?

Underwriting is lender’s process of determining if a borrower meets their criteria for a loan. Underwriters usually consider three C’s - credit, capacity and collateral. When it comes to HUD 223(f) loans, lenders will also examine a borrower’s experience with owning and managing similar multifamily properties as part of their underwriting process.