Loan Programs

MHP is a leader in permanent financing for affordable and mixed-use developments. We have provided over $1.2 billion for the financing of over 24,000 apartments in Massachusetts since 1990 and have provided more permanent financing for housing developed with 9 percent tax credits than any other lender. With Fannie Mae and FHA multifamily programs as well as MHP's direct lending programs, we offer a wide range of financing solutions to meet your needs.

Fannie Mae Multifamily Affordable Housing (MAH)

• Fixed Rate: Quick, reliable execution for new construction, acquisition or refinancing with competitive interest rates for terms between 5-30 years with 30-year amortization. Loan size from $1 million to $50 million or more. Early rate lock up to 36 months available prior to closing on low-income housing tax credit developments.
• Variable Rate: Quick, reliable execution for new construction, acquisition or refinancing with a low floater and a built-in interest rate cap for adjustable rate mortgages (“ARM”) up to a 10-year term. Pre-payable after first year with a 1 percent fee. Loan size from $1 million to $50 million. $25 million minimum for Structured ARM. 30-year amortization. Convertible to fixed rate.

Federal Housing Administration (FHA)

• Risk-Share: Quick, reliable execution, with competitive interest rates and flexible underwriting terms. Loans between $1 million and $50 million with 35- to 40-year term and amortization. Early rate lock available up to two years prior to closing.
• Multifamily Accelerated Processing “MAP” (223f): Competitive interest rates for loans from $1 million with no maximum. 35-year term and amortization. Declining pre-payment schedule with no pre-payment fees after 10 years.

MHP Direct Lending

• Fixed-rate: Competitive rates. Flexible underwriting terms. Loan size from $250,000 to $10 million. Rate lock up to two years prior to closing. Up to 20-year term and 35-year amortization.
• Tax-Exempt Financing – Direct placement through one of our bank credit lines, yielding the lowest transaction costs for tax-exempt execution. Excellent rates. Permanent loan size from $1 million to $5 million with 30-year amortization. Borrowers have choice between tax-exempt and taxable permanent take-out of bond-funded construction loan.

Chapter 40B

• Project Eligibility Letters: We issue project eligibility letters (PEL), which developers need to begin the comprehensive permitting process at the local level.
• Financing – We have a range of short- and long-term financing options to fit your project's needs. MHP has provided almost $400 million in financing for 69 multi-family developments built through Ch. 40B.

Additional financing support

• Community Revitalization Option: We provide permanent financing for predominantly market-rate housing developments that have the potential to revitalize high-poverty neighborhoods. Affordability required for 10 percent of total units.

• Green and Healthy Housing Programs: We provide lower interest rates and additional financing incentives to owners who invest in increased energy efficiency and healthy building design. More information.

• Housing Reserve Assurance Program (Housing RAP): We offer non-profit developers a way to earn more of their fee in cash by using MHP-provided credit enhancement to replace 80 percent (up to $500,000) of the cash-funded operating reserve required by tax credit investors.
• Working capital credit lines: We can lend up to $500,000 in unsecured short-term debt to help cover nonprofit operating and development costs related to new affordable housing developments.

For more information:

• Director of Lending David Rockwell: drockwell@mhp.net or 857-317-8550.
• Senior Relationship Manager Nancy McCafferty: nmccafferty@mhp.net or 857-317-8556.