After considering your options, you’ve decided to pursue a Rental Assistance Demonstration (RAD) conversion. Now what?
It’s time to pick your RAD team! Choosing the right experts to guide you through the conversion process is vital to your success. Here we breakdown the key players in your transaction:
As with any loan, selecting the right lender for your RAD transaction is very important. RAD deals can be complicated, so it is beneficial to select a lender that also has RAD experience. Teamwork and communication can make or break a RAD deal and your lender is at the helm of it all. You will want to select a lender that is customer centric, educated, hardworking and backed by a strong team of underwriters.
MEET OUR TEAM:
At Love Funding we are proud to have a large staff of knowledgeable and experienced originators, underwriters, and processors that are here to help you with your FHA financing needs.
Hiring a consultant as part of your RAD conversion will make the process run more smoothly. In addition to your lender, the consultant will help facilitate the deal and will work with you every step of the way. While the scope of your consultant’s contract may vary, they generally offer support throughout the process starting with the RAD application, the loan application, the loan closing, and continuing through the rehabilitation and stabilization of the renovated assets.
Your RAD team would not be complete without your legal counsel. Ideally, your counsel would have some experience with FHA and particularly the nuances of a RAD conversion. When selecting your legal team, please ensure that they are not only familiar with PHA rules and regulations, but also with RAD, HUD, FHA, Project Based L8, and Project Based Vouchers.
The final player in a successful RAD team is the engineer. While you might want to focus on cosmetic changes, your engineer will help identify structural, systematic or other problems that need to be attended to. The engineer’s findings will be instrumental in defining the scope of work, defining the initial and annual deposits to replacement reserve, providing a replacement schedule for building components, and repositioning your asset to provide quality, affordable housing well into the future.