Construction Loan

Construction (rehabilitation) loans are short-term, usually with a 1-year term, used to build or rehabilitate a physical structure.

Criteria

• MAXIMUM LOAN-TO-VALUE: 100%
• TERM OF LOAN: 1 to 1.5 -year maximum
• INTEREST RATE: 8-9%
• REPAYMENT: Monthly principal and interest with balloon at maturity
• POINTS: Up to 2 points
• APPLICATION FEES: $150
• FEES: Normal closings costs apply
• ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
• SECURITY: First mortgage (valid first lien on property) preferred and/or combination of first or second position lien on property along with guarantees, cash collateral, Letters of Credit, first or second position lien on other property and so forth
• OTHER: Applicant must accept CCLF technical assistance where applicable

Eligibility

• PROPERTY RESTRICTIONS: Must be located within Chicago metropolitan area (Illinois).
• BORROWER RESTRICTIONS: Must be a nonprofit, for-profit / nonprofit joint venture, for-profit subsidiary of a nonprofit, housing or business cooperative. Must be engaged in community-based housing, economic development or social service facility project that will serve or benefit low- to moderate-income people and / or communities.