Bridge-to-HUD Loan Program
A Bridge-to-HUD loan is short-term, interim financing allowing borrowers time to structure an FHA/HUD-insured mortgage that aligns with their goals. Our bridge loans are commonly used for borrowers to close on an acquisition, fund a recapitalization, or complete renovations, while Century prepares, underwrites, and closes the permanent HUD loan in parallel.
Why Bridge to HUD?
HUD's FHA-insured mortgage programs offer some of the most attractive long-term, non-recourse financing available for multifamily and seniors housing. A Bridge-to-HUD loan puts capital to work immediately, on the borrower’s timeline, enabling Century and the borrower to structure a long-term, low fixed rate, non-recourse loan that meets the borrower’s financing needs.
Our Program at a Glance
- Use of proceeds: Acquisitions, recapitalizations, renovations, refinancing
- Eligible properties: Market-rate, affordable, and healthycare/senior living. Cash flowing and non-cash-flowing.
- Term: Typically, 12 months, with extension options
- Leverage: Up to 80% LTV / 80% LTC
- DSCR: Minimum 1.20x stabilized
- Debt Service: Interest-only during the bridge term
- Pricing: Risk-adjusted spread over 30-day SOFR
“We are excited to stand up our own Bridge-to-HUD Loan Program, which will allow us to flexibly structure loans that align with our clients’ goals. Funding your vision is our mission is the motto at Century. By adding a Bridge-to-HUD Loan Program to our platform we can further assist our borrowers nationally in meeting their financing needs, whether it is to take advantage of an off-market acquisition or a recapitalization to increase rents, we are excited to offer a faster interim financing option.”
Century President and CEO Kyle Perry
Program Benefits
- Structured from day one around a defined path to permanent, HUD-insured financing
- Covers acquisition, refinancing, recapitalization, and renovation of HUD-eligible properties
- Available nationwide for market-rate, affordable, and healthcare/senior living properties, cash flowing and non-cash flowing
- Risk-adjusted spreads float over 30-day SOFR, keeping interim pricing competitive with the broader bridge market
- Interest-only debt service during the bridge term preserves cash flow for stabilization and lease-up
- Typically, a 12-month term, with extension options available
- Up to 80% Loan-to-Value / 80% Loan-to-Cost, with a minimum 1.20x stabilized DSCR