Loan Terms

Term Sheet – Construction Loans

Eligible Loans: Construction loans to finance total development costs of affordable housing projects th at have firm take – out financing

Eligible Participants: Nonprofit and for – profit developers building rent – and income – restricted housing

Maximum Loan Amount: $ 1, 000 ,000 , higher amounts at discretion of the Board

Maximum Loan Term: 12 – 24 months Interest Rate : 2.50% – 3.50% per annum – fixed

Loan Fees: 1% origination fee, $250 application fee

Payment Terms: Generally interest only monthly for construction loans

Loan – to – value ratio (LTV): Generally 80% LTV. May consider subordinate lien position

Application Window: Applications are a ccepted year round, subject to a vailability or funds. To date there has been one application round per year, closing in May.

 

Term Sheet – Predevelopment Loans

Eligible Loans: Predevelopment loans to finance early-stage development costs of affordable rental projects incurred with third parties, such as appraisals, market studies, legal fees, title searches, architectural and engineering fees.

Eligible Participants: Nonprofit and for-profit developers building rent-and income-restricted housing

Maximum Loan Amount: $5,000 to 50,000 based on need and value of loan security or guarantees

Maximum Loan Term: 12-36 months

Interest Rate: 2.50% – 3.50% per annum – fixed

Loan Fees: 1% origination fee, $250 application fee

Payment Terms: Interest accruing until loan is due and payable. All principal and accrued interest due at end of term or closing of construction loan(s), whichever occurs sooner. No prepayment penalty.

Source of Repayment: Borrower cash or take-out by construction loan(s) proceeds. Rollover to a Ventana Fund construction loan may be applied for.

Loan-to-value ratio (LTV): N/A

Guaranty: Adequate loan security or guarantees will be required from the borrower, developer, etc.

 

Download a copy of the Construction Loan Term Sheet

Download a copy of the Predevelopment Loan Term Sheet