Photo by Todd Clarke

Threshold Loan

Ventana Fund’s threshold loans are available for new construction or acquisition/refinance with rehabilitation to finance total development costs of affordable housing projects, without a permanent, formal take-out required. Loans are available to traditional affordable housing developers or small property owners and developers who may not currently utilize low-income housing tax credits or affordable housing programs.

Eligible Loans: New construction or acquisition/refinance with rehabilitation to finance total development costs of affordable housing projects, without a permanent, formal take-out required.

Eligible Participants: Loans are available to traditional affordable housing developers or small property owners and developers who may not currently utilize low-income housing tax credits or affordable housing programs.

Property Type: Smaller apartment communities of up to 49 units within the state of New Mexico.

Restrictions: Rents must be at or below 80% of Area Median Income.

Maximum Loan Amount: $1,500,000, higher amounts at discretion of the Board.

Maximum Loan Term: Up to 60 months (five years)
Interest Rate: 3.55% - 5.35% per annum for the first four years

  • Interest Rate increases by 1.00% in the 5th year of the loan
  • Considerations given for:
    • Women, Minority or Veteran Borrowers
    • Project Location if outside of Albuquerque, Santa Fe
      and Las Cruces
    • Proposed Energy Saving Improvements

Loan Fees: 1% origination fee, $2,500.00 non-refundable application and appraisal fee
Payment Terms: Loans may be interest only for up to 1 year. Monthly principal and interest payments will be made for the balance of the term according to an amortization not to exceed 30 years.

Loan-to-value ratio: 80% LTV, per an approved appraisal, OR 85% of the identified acquisition and renovation costs, whichever is less. May consider subordinate lien position.

Application Window and Process:
Applications are accepted year round, subject to availability of funds. To apply, visit our new borrowers page here.

Other Conditions: Properties must include energy efficiency improvements. Properties that include more energy efficiency upgrades and are more affordable are eligible for lower interest rates.

PREPAYMENT PENALITIES

During the term of the Threshold Loan, there will be a prepayment penalty. There will be a three (3%) percent penalty on the principal balance of the Loan which will be assessed if the Loan is paid off during the first year of the loan. For year two (2), a two (2%) percent penalty on the principal of the Loan will be assessed if the Loan is paid off during the second year of the Loan. If the Loan is paid off during the third year of the Loan, year three (3) a one (1%) percent penalty on the principal of the Loan will be assessed. There is no prepayment penalty for year four (4) and year five (5) of the Loan.

The prior language represents Ventana Fund’s current policy on prepayment penalties.  This policy is subject to change at any time.  The then current policy shall apply to all loans at loan closing.  For current terms please click here.

More specific loan information is available on the New Borrowers page.