Construction

For more information, download our loan sheet:

Construction Loan

Case Study

Spruce Ridge

NeighborWorks New Horizons | Spruce Ridge

NC’s $7.99 million loan is helping NWNH build the second phase of Spruce Meadows/Spruce Ridge in Stonington, CT. NC’s loan also refinanced the first phase construction loan. The 9% LIHTC development will have 86 apartments, with 20 at market rents.

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. ~ Seila Mosquera-Bruno, Executive Director, NeighborWorks New Horizons

 

Details

Uses

To build or significantly rehabilitate/renovate apartment, condominium, single-family, commercial, and mixed-use developments

Loan amount

Up to $10,000,000

Loan term

Generally up to 36 months

Interest rate

 From 6.00%, dependent on loan amount and term, complexity of the repayment sources and permanent financing conditions

Collateral/security

First position liens on the property and project under construction Up to 95% LTV/LTC 

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

Draws and funding

Funds are drawn on a progress basis, generally once per month, through standard inspection and requisition process Draw processing and inspection fees, $500 plus inspector cost

Third-party reports

Appraisal, Phase I/II environmental assessments, market study, construction plan and contract review