Construction

Construction Loans

To build or significantly rehabilitate/renovate apartment, condominium, single-family, commercial, and mixed-use developments

NWNH Spruce Ridge Phase 1

Case Study

NeighborWorks New Horizons | Spruce Ridge

NC’s $7.99 million loan is helping NWNH build the second phase of Spruce Meadows/Spruce Ridge in Stonington, CT. NC’s loan also refinanced the first phase construction loan. The 9% LIHTC development will have 86 apartments, with 20 at market rents.

DETAILS
Uses To build or significantly rehabilitate/renovate apartment, condominium, single-family, commercial, and mixed-use developments
Loan Amount Up to $10,000,000
Loan Term Generally up to 36 months
Interest Rate From 6.00%, dependent on loan amount and term, complexity of the repayment sources and permanent financing conditions
Collateral/security First position liens on the property and project under construction Up to 95% LTV/LTC
Repayment Source Permanent financing or proceeds from home/property sales, 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 assessments, market study, construction plan and contract review