|
"For-Profit" Predevelopment or Construction loans are available
for small to mid-size development firms who are engaged in a housing
or economic development project that will benefit low- to moderate-income
people and/or communities.
Criteria
- MAXIMUM MORTGAGE AMOUNT: Prevailing CCLF maximum - currently
$350,000
- MAXIMUM LOAN-TO-VALUE: 90%
- TERM OF LOAN: 2-year maximum
- INTEREST RATE: Prime plus 1 to 4 points (depending on credit
history)
- INTEREST DEPOSIT (reserve): 0-2 months (depending on financial
strength)
- INTEREST REPAYMENT: Interest-only payments monthly until maturity
- POINTS: 1 to 2 points (half due at commitment, half due at closing)
- APPLICATION FEES: $150
- FEES: Normal closings costs apply (including
legal fees)
- ESCROW DISBURSEMENT: Required on all loans exceeding $5,000
- SECURITY:
a) First mortgage (valid first lien on property) and
personal guarantees ; and/or
b) other collatoral: cash, Letters
of Credit, first or second position lien on other property, and
so forth
- OTHER: CCLF may provide technical assistance where applicable
Eligibility
- PROPERTY RESTRICTIONS: Must be located within Chicago metropolitan
area (Illinois)
- SOCIAL IMPACT RESTRICTIONS
a) Project must be in census tract whose median household income
is 80% (or less) of the citywide median income; and/or
b) Income of project end-user could not exceed 100% of PMSA; mixed-income
developments are eligible on a case-by-case basis.
c) Documented community support is also required.
- BORROWER RESTRICTIONS:
Small to mid-size firm (minority-owned and women-owned firms especially
encouraged)
Have questions? Feel free to contact our Lending
Team or 312.252.0440 ext. 203.
|
|
|
|
