Tap to get financing
Last updated on Sep 23, 2022
1 min read

Market Studies

Everything you need to know about Market Studies for HUD 232 loans.

In this article:
  1. Market Studies for HUD 232 Loans
  2. HUD Valuation Analysis
  3. HUD Market Condition Analysis
  4. Get Financing
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

Market Studies for HUD 232 Loans

HUD-approved Market Studies attempt to examine a the economic viability of a property, both by looking at it’s positioning in the current market, as well as the health of the local market as a whole. While in the past, market studies were typically submitted to HUD separately, today, HUD requests that appraisals and market studies be submitted together in one, streamlined report. Typically, market studies have two main components, a HUD Valuation Analysis, and a HUD Market Condition Analysis.

HUD Valuation Analysis

The HUD Valuation Analysis for HUD 232 loans and HUD 232/223(f) loans consists of examining a property’s suitability as collateral for a HUD insured mortgage, by:

  • Estimating the project’s market value 

  • Analyzing both residential and commercial rents

  • Assessing the market need for the project

  • Looking at estimated expenses and income 

  • Determining whether the property’s income is likely to increase or decrease over time

    • HUD Market Condition Analysis

    The HUD Market Condition Analysis for HUD 232 loans focuses less on the property itself, and more on the surrounding market. To do this, the Market Condition Analysis will look at factors like supply and demand, general market conditions, and the estimated absorption time (for new construction).

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →