| Loan Amounts | Loans generally range from $10,000 to $250,000. The Midlands Housing Trust Fund can potentially partner with other loan funds for requests exceeding $250,000. |
| Interest Rates | Rates are between prime and 4 points over prime and may vary with the sources and costs of our capital. Interest rate discounts may apply in some circumstances: up to 0.5% for developments serving households at 80% of area median income and below; up to 1% for developments serving households at 60% of area median income and below; and up to 0.5% for developments that are certified energy efficient by LEED, Green Communities, Earth craft, Energy Star, and NAHB. |
| Maximum Term | Bridge loans up lo 12 months (one year); gap loans up to 24 months (two years); permanent loans (on a very limited basis) up to 240 months (twenty years). Other terms may be negotiated at the discretion or the loan committee and executive director. |
| Eligible Borrowers | Non-profit organizations, for-profit businesses, government entities developing eligible properties, and LLCs. |
| Eligible Activities | Housing development loans can be used for predevelopment, acquisition, infrastructure, rehabilitation, construction, and permanent financing. |
| Service Area | Abbeville, Aiken, Allendale, Bamberg, Barnwell, Calhoun, Clarendon, Edgefield, Fairfield, Florence, Greenwood, Horry, Kershaw, Lee, Lexington, Marion, McCormick, Newberry, Orangeburg, Richland, Saluda, Sumter and Williamsburg Counties in the state of South Carolina. |
| Targeted Lending | MHTF will finance Low Income Housing Tax Credit (LIHTC) in our service area. |
| Security | Loans must be secured. Development loans may be secured by a commitment letter for construction financing, permanent financing, grant funding, a promissory note, mortgage, and personal guarantee. Exception: MHTF may accept a written commitment of funds from a government entity or other reliable source as collateral if the purpose of the MHTF loan is to enable the borrower to fulfill the requirements for disbursing those funds. |
| Security Assurances | Appraisal, environmental, title insurance, liability and flood plain insurance, certificate of occupancy, and inspection. |
| Debt Service Coverage | Development loans typically require a minimum of 1.20, with a pre-funded operating reserve on permanent loans. |
| Equity Contribution | Development loans require a minimum 10% equity contribution, with a pre-funded operating reserve of permanent loans. |
| Payment | Negotiable. Interest-only through construction (negotiable, depending on the project); principal due in full upon construction loan dosing. Permanent loans usually have equal monthly payments of amortized principal and interest. However, 10-year terms with amortization periods or up to 15 years are allowed with a balloon payment at the end of the 10-year term, in order to accommodate the financing needs of the development. |
| Fees | $500 non-refundable application fee (may be waived at the board's discretion);1.00%-2.5%, origination fee due at closing depending on loan program and affordability percentage (may be waived or reduced at Ed's or board's discretion); 5% late fee of the amount past due after 10 day grace period; returned check fee equal to fees charged to MHTF for each returned check or $35, whichever is greater. |
| Closing Costs | The borrower is responsible for the expense of document preparation and closing costs. |
| Housing Affordability Controls | All housing units funded by MHTF must be affordable to households earning at or below 80% of the Area Median Income published annually by the U.S. Department of Housing & Urban Development. Upon project completion, all housing units funded by MHTF are subject to a 20-year restrictive covenant on the property for which the loan is made. |
| Submission of Application | Applicants must submit one (1) hard copy of the application and all supporting materials or one (1) electronic (PDF) copy of the application and all supporting materials. The application materials must be accompanied by a $500 check for the application fee. |
