A convergence of factors, including lower interest rates and strong demand, helped fuel a surge in deal volume for the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) loan programs in fiscal year (FY) 2025, according to a new article from Seniors Housing Business. Lenders closed $5.96 billion in loans for FY 2025, up from $3.15 billion the prior year, an 89% increase.
“New application volume has actually picked up over the most recent months as we have seen a slight decline in long-term interest rates, prompting owners to seek the security of a long-term, non-recourse debt structure that the [HUD Section 232] program provides,” noted Lument’s Jason Smeck.
Lument finished in HUD’s top ten for FY 2025 and expects substantial growth in loan volume for FY 2026.
“Lument is poised for a very strong year,” Smeck added.
For more HUD financing insights, read the complete article at Seniors Housing Business.
