Predevelopment Loans
A key element of Century’s mission is to spur new residential development by providing predevelopment financing.
Predevelopment loans are used to pay the costs of development design and engineering, entitlements and other public agency approvals, deposits for site purchases, and third-party reports. Century’s fl exible predevelopment loans are typically tied to site acquisitions and are available to experienced developers of affordable homes.
Get started today using the Century Quick Application or call Aaron Wooler at
(310) 642-2019 to see how Century can help get your project off the ground.
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Basic Predevelopment Loan Terms |
|
Purpose |
The loan will be used for predevelopment costs for residential development. |
Structure |
Term loans or revolving lines of credit. |
Loan Amount |
$50,000 to $500,000 |
Term |
6–24 months |
Pricing |
Variable, typically LIBOR plus 400–600 basis points with a floor of 7.5%. Loan fees include origination fees, legal documentation fees, and the costs of third party reports. |
Repayment |
Repaid through site acquisition or construction financing. Public agency funds may be used when available. Interest reserves may be funded from the loan proceeds, or be paid directly. |
Security & Collateral |
First Deed of Trust and Assignment of Rents. Full recourse to the development Sponsors. |
Download Predevelopment Loan Term Sheet (PDF)
Director of Acquisitions
Affirmed Housing Group
San Diego, CA