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Acquisition

Acquisition Loans

To purchase land and buildings planned for future development, preservation of affordability, or other redevelopment/reuse activities, for both residential and commercial development
Uses To purchase land and/or operating properties planned for future residential and commercial development, preservation of affordability, or other redevelopment/reuse activities
Loan amount Up to $10,000,000
Loan term Up to 36 months for land/vacant building acquisition
Up to 60 months for operating property acquisition
Interest rate From 5.00%, dependent on lien position, loan term, and duration and complexity of the process to move the project to construction or other start point
Payments are generally interest-only
Collateral/security First or subordinate mortgage/deed of trust on the property being acquired
Maximum 85% LTV for unimproved land and vacant buildings
Maximum 95% LTV for operating properties
Repayment source Construction or permanent financing, depending on project type and timeline
Fees Application Fee - $1,000
Origination Fee - 1.00% to 1.50% of loan amount
Third-party reports Appraisal, Phase I/II environmental, market study, capital needs assessment for operating property
Download our
loan acquisition sheet
When we needed to close a construction loan in a short timeframe, in the midst of a disrupted LIHTC market, their team moved quickly and got the deal done. We have always found NC to provide creative solutions to development challenges.
Seila Mosquera-BrunoExecutive Director, NeighborWorks New Horizons
Without NeighborWorks Capital participation in our loans, it would be difficult for us to finance many larger developments and New Market Tax Credit projects throughout the Mid-South region. Since 2014, NeighborWorks Capital has provided loan participations to bridge, acquisition and mini-permanent loans.
Phil EideSVP Community and Economic Development, Hope Enterprise Corporation
NeighborWorks Capital was there for us when we made the strategic decision to enter a new market and develop a major project that will be transformative for Kansas City. The acquisition and predevelopment financing they provided was critical to this project and we value their partnership.
Ernesto VigoreauxChief Development Officer, Asian Americans for Equality
NeighborWorks Capital was a responsive financing partner, ready to apply a mission-focused solution, rather than try to fit us into an off-the-shelf product. It will allow us to grow our real estate business and our impact around Jacksonville, improving our community and our bottom line.
Carrie DavisPresident and CEO, Wealth Watchers
The NeighborWorks Capital team listened to our needs and found the right solution. The favorable terms and rate of NeighborWorks Capital's acquisition loan product were exactly what we were looking for. We are grateful for their professionalism, lending expertise, and great service.
Ginger SegelChief Development Services Officer, Community Frameworks
We found working with NeighborWorks Capital to be a refreshing experience. Because of their experience and flexibility, Avenue CDC had a smooth closing to purchase an affordable property from our development partners, giving Avenue greater control to keep the property affordable for a long time.
Robert FiederleinSenior Director of Real Estate Development, Avenue CDC
We appreciate NeighborWorks Capital’s willingness to take on a project, and the team’s ability to underwrite and close the loan in a short time frame. We can’t thank them enough for closing this project and for the other financing tools they have provided to EBALDC to help advance our mission.
Jason VargasExecutive VP, Real Estate Development, EBALDC
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