Sources:  The Real Estate Capital Institute®, CNNMoney.com, US Federal Reserve.  Disclaimer:  The information contained herein is compiled from various sources deemed reliable, but is not guaranteed to be accurate and may contain typographical errors and/or be incomplete.  Statements, opinions and estimates presented herein are subject to change without notice and are independent of sources mentioned.   Quotation not permitted without written permission.  Past performance does not indicate future results.

Notes: (1)  For illustrative purposes only.  Timeline estimates widely vary based on various factors such as the existing or to-be-built project, property type, funding structure, time of the year (holiday and vacation seasons), availability of Blue-shading indicates process prior to formal application/rate lock.  Standard documentation processing.

In general, funding timelines among various capital sources fall within similar ranges.  All-equity (100% cash) transactions close quickly as financing contingencies are eliminated. Otherwise, various debt and equity transactions can close as fast as 15 days, or span a half year or more, depending upon the type of transaction, required documentation, the motivation of all parties and funding program. 

In general, conventional loan fundings for acquisition and refinancing of existing properties typically close in two months or less.  New construction projects demand longer timetables, often exceeding six months or more — common for federal programs such as HUD/FHA. 

Although timetable widely vary, two timeline examples (shown in days starting using the current starting date) are illustrated below including  conventional financing and HUD new-construction fundings:

CONVENTIONAL LOAN TIMELINE

FHA CONSTRUCTION/REHAB LOAN TIMELINE

Conventional Loan Timeline based upon immediate-delivery funding of 90 days or less for traditional income property types (apartment, industrial, office and retail).

FHA  Timeline based upon new construction/substantial rehabilitation multifamily permanent loans (e.g.,  220, 221d4) and immediate-delivery funding (e.g.,  223f) of  8 months or less.