Affordable Housing
Who can take out a loan with the Trust Fund?The Michigan Interfaith Trust Fund lends primarily to non-profit 501(c)(3) or 501(c)(4) organizations such as housing development corporations, cooperatives, land trusts, community development corporations, faith-based institutions, labor unions, credit unions, and social service agencies with a stated mission of creating affordable housing. For-profit entities and local units of government may also be eligible.
How can loan dollars be used?
Loans are provided for all phases of affordable housing development including pre-development expenses, construction, rehabilitation, and adaptive re-use projects. Such projects may include the development of single or multi-family rental, lease-purchase, homeownership, and cooperative living units. Loans may also be obtained for permanent financing and bridge loans.
What are the loan terms?
Generally, the Trust Fund makes short-term loans of six years or less at interest rates of six to nine percent (6-9%). A two percent (2%) origination fee is charged at closing, and may be financed. Security is typically in the form of a real estate mortgage on the project itself, but may be on other property, and shall not generally exceed 100% of the appraised value of the secured property. All collateral shall be insured.
How is the Trust Fund able
to make these loans?
By utilizing a unique method of underwriting, the Fund successfully blends traditional due dilligence concerns with an understanding of the atypical difficulties faced by non-profit developers in the current market.
What parts of Michigan are served?
The Fund is is a statewide organization, providing loans throughout the entire State of Michigan.