What is Underwriting?

Underwriting in Relation to FHA 232 Financing

Underwriting is the lender’s process of determining if a borrower meets their criteria for a loan. In the underwriting process, a lender considers the potential borrower’s credit, capacity, and collateral. During the HUD 232 underwriting process, lenders will consider both the borrower’s financial strength, as well as the borrower’s history of owning and operating similar facilities in the past, in order to determine their suitability for a loan.

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