The most basic type of financing, this product offers the longest term, lowest rate, fully non-recourse financing, of any lender. It is important to know, that this option carries with it the HUD Mortgage Insurance Premium (MIP); an add-on to the interest rate of about 45bps, and remains in place for the life of the loan. Depending on loan size, HUD lenders can charge fees of up to 2%, in addition to the fees charged by SCC. One should be aware, that although HUD has cash-out restrictions, and will generally not allow even equity recapture, or needless to say, a simple cash-out, they will allow closing costs or loans already on the property to be retired using their credit facility. FHA / HUD loans can take quite a bit of time to close, and will require the diligence of the client, and the client’s financial staff.