Single-Family Line of Credit

For more information, download our loan sheet:

2019 SF LOC Solution Sheet.pdf

Case Study

Wealth Watchers

Wealth Watchers | New construction line of credit

Wealth Watchers is using a $500,000 revolving line from NC to build new homes on vacant lots they own. By adding new homes to moderate income neighborhoods, Wealth Watchers is creating affordable homeownership and a sustainable line of business.

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. ~ Carrie Davis, President and CEO, Wealth Watchers

 

Details

Uses

To purchase existing single-family homes for rehabilitation and sale, or to purchase vacant lots for new construction of for-sale homes

Loan amount

Up to $5,000,000

Loan term

12-month initial term, with unlimited 12-month renewals, based on borrower performance and capacity

Interest rate

From 5.75%, dependent on lien position, loan term, and complexity of the process to move the project to construction or sale

Collateral/security

First liens on the properties being acquired or constructed

Maximum LTV/LTC 80%

Repayment source

Proceeds from the sale of homes

Fees

Application Fee - $1,000
Origination Fee - 0.75% to 1.0% of loan amount

Draws and funding

Funds are drawn on a progress basis, generally once per month, through standard inspection and requisition process

Draw fee – 0.75% of draw amount

Third-party reports

Appraisal, environmental questionnaire, market analysis