Construction Loan

Eligible Loans: Construction loans to finance total development costs of new construction or acquisition/rehabilitation affordable housing projects that have firm take-out financing.

Eligible Participants: Nonprofit and for-profit affordable housing developers.

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: 12-24 months
Interest Rate:
5.0% - 6.0% per annum – fixed

Loan Fees: 1% origination fee, $2,500.00 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 and Process: Applications are accepted year round, subject to availability of funds. To apply, visit our new borrowers page here.

Other Conditions: This term sheet is meant to be a guideline but may not have all terms and conditions that will be used in underwriting a particular loan request that is submitted to the Ventana Fund. Funding of any project is subject to availability of funds.