Uses | Acquisition-rehab and refinancing of operating rental, commercial, and mixed-use properties, including in New Markets Tax Credit developments | |
Loan amount |
Up to $7,000,000 for Mini-perm Loan Up to $2,000,000 for Permanent Loan |
|
Loan term |
7 years for Mini-perm Loans 18 years for Permanent Loans |
|
Interest rate | From 6.25% | |
Collateral/security | 1st and 2nd position lien on financed and/or unencumbered real property, pledged earned developer fees, and grant funds, assignment of ownership interests Maximum LTV 95% | |
Payments |
Monthly P&I payments based on 15 to 30-year amortization Minimum DSCR of 1.10x Payments made from operating cash flow of the property |
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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 |
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Third-party reports | Appraisal, Phase I/II environmental assessments, market study, construction plan and contract review |