Loan Product/Credit conditions | Pre-development | Acquisition | Construction to Permanent | Bridge | |||
Loan Product/Credit conditions | Pre-development | Acquisition | Construction to Permanent | Bridge | |||
Purpose (Uses) | Pre-acquisition or post; covering permitting, third party reports, inspections, and other pre-construction costs. | Purchase of vacant land, multifamily buildings, commercial buildings for residential or commercial reuse, community facilities, or owner-occupied commercial space. | Construction or rehabilitation of multifamily buildings, commercial buildings for residential or commercial reuse, community facilities, or owner-occupied commercial space. | Short-term financing of acquisition or construction, with identified takeout | |||
Borrower eligibility | For profit or nonprofit developers, nonprofit organizations, small business owners | ||||||
Amount | $50K-$500K | $100K-$1 Million | |||||
Geography | District of Columbia, Maryland and Virginia | ||||||
Term | Up to 24 months | Up to 7 years | Up to 7 years | Up to 24 months | |||
Rates range (senior notes) | 4.5% - 8% | ||||||
Rates range (subordinate notes) | NA | 5.0% - 9.0% | |||||
Combined maximum LTV (LTC for small business) | Up to 90% | Up to 90% | Up to 90% | Up to 90% | |||
Repayment | Interest only or amortizing | Interest only or amortizing | Interest only or amortizing | Interest only | |||
Subordination | No | Yes, but preference for unitranche vs 2 separate notes | Yes, but preference for unitranche vs 2 separate notes | Yes, but preference for unitranche vs 2 separate notes | |||
Origination/Commitment Fee | 1.00%-2.00% | ||||||
Modification/Extension fees | 0.25-0.50% (subject to cost) | ||||||
Other Fees and costs: Legal, UCC/Lien filing fees; appraisal | Covered by borrower, at cost | ||||||
Collateral | 1st lien or alternative collateral; will consider unsecured in some cases | 1st or 2nd lien | 1st or 2nd lien | 1st or 2nd lien | |||
Debt Service Coverage Ratio (DSCR) | NA | For commercial and nonprofit real estate loans: 1.20x; 1.15x may be allowed in early years, as project stabilizes. | NA | ||||
Affordability Covenants | Aim to Obtain affordability covenants of at least 10-15 years, specifically in subordinate debt deals where our rates are below market. | ||||||
Guarantee Requirements | Personal Guaranties are required by anyone owning 20% or more of the borrowing entity |