Loan Products

NC’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. 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 needs. If one of our loan products is appropriate for your project you will be asked to submit a Loan Application with requested attachments for completion.  

Predevelopment

NC’s Predevelopment Loan product is aimed at providing NWOs with 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. Loans are unsecured but made on a recourse basis to the borrower.

Interim Development

To bridge NWO projects from the early due diligence phase of a project and obtain site control of properties 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 loan amounts may be up to $3 million with a maximum loan term of 36 months with a portion unsecured and can be subordinated. 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.

The NeighborWorks network collectively owns and manages almost 90,000 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 distressed rental projects that will require capital repairs and improvements to improve occupancy and stabilize operations. Loan amounts may be 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 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.

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.

If you have immediate questions please contact Mark Knight at 240-821-1651, ext 204 or e-mail him at mknight@neighborworkscapital.org.