Loan Products

NeighborWorks Capital’s loan products provide affordable and flexible capital for pre-development and acquisition of land and buildings for rental, for-sale and commercial projects from concept to construction to rehab during property operations. You can click on the title of each product below to learn more and access the term sheet.

If you are interested in a loan using one of our six loan products, please fill out the Loan Inquiry Form. Our lending team will call you back to discuss your project’s needs. Once it is dtermined that one of our loan products is appropriate for your project you will be asked to submit a Loan Application with requested attachments for completion. We are proud of our ability to meet your financing timeframe and on average close most loans in less than 60 days after receipt of a complete application.

For questions regarding our loan products, please contact John Maneval, Director of Lending at 240.821.1651, x204 or jmaneval@neighborworkscapital.org . 

Predevelopment

NC’s Predevelopment Loan product is aimed at providing NWOs with critical and flexible funds needed to conduct early stage due diligence. Funds are typically used for environmental studies, market studies, appraisals, A&E expense, legal fees and earnest money deposits. Pre-development loan amounts can be up to $400,000 with a maximum loan term of 30 months. Loan rate is 4.50% and are unsecured but made on a recourse basis to the borrower. This product has been especiaaly beneficial to small and rural NWOs who have limited access to local or organizational resources.

Interim Development

The Interim Development loan is used to provide NWO projects with flexible funds from the due diligence phase of a project and obtain site control of land and buildings up to the point when construction or permanent financing closes.  Funds are typically used for land and building acquisition, critical repairs and pre-development or other costs associated with securing construction or permanent financing.  Interim Development rate is 5.50% and loan amounts up to $3 million with a maximum loan term of 36 months. A portion of the loan can be unsecured and can be in a subordinate position. Since some projects will require more than NC’s loan maximum we have co-lending relationships across the country and can assemble additional loan capital to assure a seamless, cost effective loan.

The NeighborWorks network collectively owns and manages almost 100,000 units of affordable rental housing. NC is pleased to offer four Mini-Perm loan products designed to address emerging rental preservation priorities amongst NeighborWorks organizations with their existing rental portfolios and acquisition pipelines with a focus on green and energy objectives. 

Mini-Perm Acquisition

For NWOs who have the opportunity to purchase existing rental properties to preserve affordable housing that may require capital for repairs and improvements to improve occupancy and stabilize operations. Loan rate of 6.00% with amounts up to $3 million with a maximum loan term of 5 years and up to 95% LTV. Since some projects will require more than NC’s loan maximum we have co-lending relationships around the country and can assemble additional loan capital to assure a seamless, cost effective loan.

Mini-Perm General Partner Interests

For acquisition of General Partner Interests of non NWO-owned rental property financed with Low Income Housing Tax Credits. This is one of the only products of its kind in the affordable housing industry tailored to assist non-profits in the purchase of affordable rental properties from third-party General Partners who are looking for a streamlined and efficient approach to ownership transfer without a complete project recapitalization. Loan amounts may be up to $500,000 with a maximum loan term of 7 years.

Mini-Perm Property Improvement

For the preservation of existing NWO rental projects for general capital repairs and improvements, including green enhancements and energy saving features. Loan amounts may be up to $750,000 with a maximum loan term of 7 years.

In collaboration with NeighborWorks America, NC will offer a grant to approved borrowers to complete a Green Capital Needs Assessment and purchase of energy monitoring software - supported by a grant from The Home Depot Foundation.

Mini-Perm Renewable Energy Equipment

For the purchase and installation of renewable energy or energy saving equipment for existing NWO rental properties as well as NWO headquarters and commercial buildings to improve sustainability and reduce energy consumption. Loan amounts may be up to $500,000 with a maximum loan term of 7 years.

In collaboration with NeighborWorks America, NC will offer a grant to approved borrowers to complete a Green Capital Needs Assessment and purchase of energy monitoring software - supported by a grant from The Home Depot Foundation.