Raza Development Fund Affordable Housing Loan Program

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Raza Development FundAffordable Housing Loan
Program

• Partnerships of Hope Institute
• Training Module

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Raza Development FundAffordable Housing Loan
Program
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Raza Development FundAffordable Housing Loan
Program

• What kind of loan do I need?
• What documents should I submit?
• What will the Lender focus on?
• How long does it take?
• When can we close?
• How does the draw process work?

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Raza Development FundAffordable Housing Loan
Program

• Loan Types
• Acquisition Financing Term vs. ALOC
• Raw Land
• Improved Land
• Finished Lots
• Pre Development Financing
• Due Diligence Costs
• Construction Financing
• Soft/Hard Costs

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Raza Development FundAffordable Housing Loan
Program

• Loan Application / Packaging
• Checklist Scope
• Site / Title Condition
• Project Feasibility
• Organization / Governance
• Financial Capacity

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Raza Development FundAffordable Housing Loan
Program

• Key Focus Factors The 5 Cs
• Capacity
• Borrower
• Development Team
• Character
• Borrower
• Sponsor
• Capital
• Borrower
• Sponsor
• Collateral
• Value
• Conditions
• Risk Mitigation

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Raza Development FundAffordable Housing Loan
Program

• Timing
• Underwriting / Commitment
• Variables
• How complete is the package
• Is there real estate collateral
• Size of loan request
• Closing
• Variables
• Document / Term negotiations
• Conditions of closing

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Raza Development FundAffordable Housing Loan
Program

• Post Closing Construction Draws
• Land America Disbursement Contract
• Lenders Inspector
• Pre construction review
• Monthly site inspections
• Industry Standard Documentation
• AIA G702,G703
• Bring-down title endorsements
• Conditional vs. Unconditional lien waivers
• Retention of 10

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Raza Development FundAffordable Housing Loan
Program

• Helpful Hints
• Be prepared for questions
• Allocate staff / consultants to the process
• Build a Lenders File with pertinent data

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Raza Development FundAffordable Housing Loan
Program
Building Capital for the
American Dream