HUD-Approved Lender Definition
A HUD-approved lender is a lender which can offer HUD-insured financing. In order to issue HUD loans, particularly HUD multifamily loans, a lender must meet several requirements. These include having a specific net worth and a specific amount of liquidity, having a clean legal and financial record, and having a sufficient amount of errors and omissions (E&O) insurance. HUD-approved lenders must also send all of their underwriters to an in-person training session with HUD.