Since 1986, Stearns Bank has built a solid reputation in their knowledge of the Low Income Housing Tax Credit (LIHTC) program. Work directly with decision makers to get your affordable housing project approved and closed quickly. We also save you money by using standardized loan documents with most syndicators to avoid the usual fees associated with outside legal counsel.

Affordable Housing Loan Programs

Construction Loan. We tailor your loan to what is needed to get the project completed on time and on budget.

  • Loan Size: Any amount considered
  • Term/Amortization: 12 to 24 months / tailored to the need of your project
  • Interest Rate: Spread over Wall Street Journal Prime Index
  • Closing: With all required docs, Stearns Bank has the ability to close your loan within 2 to 6 weeks. Typically an appraisal, ALTA survey, and title insurance determine the number of days to close.

Permanent Loan. Perm loan partners provide products with competitive permanent finance solutions to compliment the Stearns Bank construction and pre-development finance package.

  • Loan Size: Any amount considered
  • Term/Amortization: 15 - 18 years / 30-year amortization
  • Interest Rate: Fixed at spreads over the 10-year US Treasury or Libor
  • Rate Lock: Up to a 30-month
  • LTV Ratio: 90% for LIHTC projects
  • Escrows: Full escrows required including taxes, insurance, operating reserves and replacement reserves
  • Requirements: 90% occupancy for three consecutive months and achievement of a DSCR of 1.15x.

Mini-Perm Loans. Call 1-800-320-7262 for details.