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Construction

Construction Loans

To build or significantly rehabilitate/renovate existing apartment, condominium, single-family, commercial, and mixed-use developments
Uses To build new or significantly rehabilitate/renovate existing apartment, condominium, single-family, commercial, and mixed-use properties
Loan amount Up to $10,000,000
Loan term Up to 36 months for single-project loans
Up to 60 months for multi-phase projects, especially large subdivisions​
Interest rate From 5.00%, dependent on the loan amount, loan term, complexity and certainty of the repayment sources and permanent financing conditions​
Collateral/security First position liens on the property and project under construction
Maximum 85% LTV/LTC​
Repayment source Permanent financing for apartment or commercial/mixed-use projects
Sale proceeds from home/property sales
Fees Application Fee - $1,000
Origination Fee - 1.25% to 2.00% of loan amount
Borrower pays all third-party inspection and review costs
Draws and Funding Funds are drawn on a progress basis, generally once per month, through standard inspection and requisition process
Third-party reports Appraisal, Phase I/II environmental assessments, market study, capital needs assessment for rehabilitation project, construction plans, budget and contract review​
Download our
Construction Loan 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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