FINANCING – CONSTRUCTION LOAN

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CONSTRUCTION LOAN 

Uses NIIF construction loans follow acquisition of property or vacant sites, and are used to cover hard and soft costs associated with new construction, adaptive reuse or extensive renovation for residential, commercial or mixed use.
Loan amount Up to $3,000,000, typically to be issued alongside another co-lender or with NIIF as a participant
Loan term Generally 18–24 months
Interest rate and repayment

From 5.0%, subject to underwriting

Payments may be interest only

Collateral/security First (if available) or subordinate liens on the property acquired

Generally loan to value (LTV) up to 90% of appraised “as completed” value; non-profit sponsors may be eligible for higher LTV, subject to underwriting

Repayment source Permanent financing, proceeds from sales, or other takeout source, depending on project type and timeline
Fees

Commitment fee — $1,000

Origination fee — Up to 1.50% of loan amount

Third party legal fees and other third-party fees as incurred

Construction draw / inspection fees as applicable

All terms are estimated and subject to periodic revision, at NIIF’s sole discretion.  Inquiries or questions may be directed by email to Lori Glass, Chief Lending Officer , at Lori@Baltimoreniif.org.