Mini-perm

Sometimes you don’t need a long-term loan, or a short term – you need a loan that is just right. We can help you with a competitive and customized medium--term loan that meets your needs so you can focus on your organization’s mission.


Uses	Acquisition and rehabilitation or repositioning of operating multifamily rental, commercial, and mixed-use properties, including New Markets Tax Credit-financed developments
Loan amount	Up to $7,500,000
Loan term	5 or 7 years with 15-year or 30-year amortization
Interest rate	Please call us for current fixed rates
Collateral/security	1st or 2nd position mortgage/deed of trust and assignment of rents on the financed property For NMTC-financed properties, security will include pledge of ownership interests, grant funds, earned developer fees, where direct security interest in real estate is not permitted.
Recourse & guarantee	Loan will be recourse to the Borrower for any outstanding principal amount greater than 80% of the property value. If the Borrower is an SPE, the Sponsor will provide a repayment guarantee for the same amount. Industry-standard nonrecourse carveout provisions will be applied.
Loan to value	Maximum of 95%, based on appraised value with stabilized occupancy
Payments	Monthly P&I payments based on 15 to 30-year amortization Debt service payments and replacement reserve deposits made from property cash flow
Debt coverage	Minimum DCR of 1.15x for 1st position loans, 1.05x for 2nd position loans DCR calculation includes replacement reserve deposits (if required)
Replacement reserves	May be required for loans with 7-year term. Underwritten replacement reserves will be determined by Property Condition Report, estimating the amount needed for capital investment during the term of the loan. Replacement reserves will be collected, held, and controlled by NeighborWorks Capital.
Prepayment premium	Three percent (3.0%) for the first 12 months after closing, declining by 1% annually through the first three years of the loan term. No prepayment penalty after three years.
Repayment source	Refinancing or sale of property
Fees	Application Fee - $1,000 Origination Fee - 1.00% to 1.50% of Loan Amount
Third-party reports	Appraisal, Phase I/II environmental, property condition report, market analysis (for repositioning)

Want a little more general information about permanent loans? Check out our Technical Assistance Guide. In just four pages we’ll show you how to:

Compare loan terms
Choose the right lender for your property
Prepare for your loan application
Know what factors your lender will consider

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Mini-perm Loan terms here

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.

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.

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.

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.

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.

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.

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.

Mini-perm

Sometimes you don’t need a long-term loan, or a short term – you need a loan that is just right. We can help you with a competitive and customized medium--term loan that meets your needs so you can focus on your organization’s mission.

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