1. How large of a loan can we receive?
a. As large a loan that fits within the appropriate loan to value ratio and the debt coverage ratios for your loan. There is no maximum dollar amount figure.
2. We are a non-profit board, do we need to personally guarantee the loan?
a. No. Based on the program we will not be providing any loans that will require personal guarantees.
3. What are the extra fees/costs?
a. There are several fees that will vary from loan to loan to set up and approve the mortgage. These fees include:
i. Insurance review fee ($430)
ii. Phase 1 review fee ($150)
iii. Legal fees for the borrower and lender (mortgage dependant)
4. Can we work on a loan application if we are still in an operating agreement?
a. Yes. We can work on the strategy and application for the loan but the proper waivers to secure the loan earlier or expiry must be in place before the funds are advanced.
5. Can we use the money for other initiatives or properties we manage?
a. This answer depends on which loan to value you proceed with. If the loan is under 65% loan to value then you are free to allocate the funds as you see fit. If the loan is higher than that than the funds need to be used for specific purposes, ie repairing your existing building, repairing another affordable building, building new affordable housing. The majority of the loans we see are under the 65% threshold and the funds are allocated as the board of directors determines.