Multifamily | Single Family | ||
Uses | To acquire and hold properties for short periods (less than 36 months) before stabilizing and refinance/recapitalization | To build new, or acquire and rehabilitate existing homes | |
Loan amount | Up to $10,000,000 for multifamily acquisition | Up to $5,000,000 for single-family construction | |
Loan term | 36 to 60 months, 24-month draw period | Up to 24 months | |
Interest rate |
Please call us for current fixed rates. Rate dependent on lien position, loan term, and complexity of the process to move projects to construction or other refinancing opportunities | Please call us for current fixed rates. Rate dependent on lien position, loan term, and complexity of the process to move projects to construction and sale | |
Collateral/security |
First or subordinate lien on the property being acquired Maximum 85% LTV for vacant properties Maximum 95% LTV for operating properties (with structured principal payments after 36 months) |
First lien on the property being built or rehabilitated Maximum 85% LTV |
|
Repayment source | Construction or permanent financing depending on project type | Sales proceeds from homes or lots | |
Fees |
Application Fee - $1,000 Origination fee – 0.75% of loan amount Draw processing fee – 0.75% of draw |
Application Fee - $1,000 Origination fee – 1.0% to 1.5% of loan amount |
|
Draw process | Each acquisition request is analyzed by NC prior to approval, with funding generally within 15 to 30 days of request, depending on acquisition timeline | Each draw request is analyzed by NC with funding generally within 10 days of request | |
Third-party reports | Appraisal, Phase I/II environmental assessments, market study, capital needs assessment for operating property | Appraisal, Phase I/II environmental assessments, market study, construction cost review |
*Interest rates are estimates and subject to change based on market conditions
Loans@neighborworkscapital.org
Tel: (240) 821-1651
8484 Georgia Ave. Ste 330
Silver Spring, MD 20910
Hours: Mon-Fri 8am-6pm
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