Loan Programs

MHP is a leader in permanent financing for affordable and mixed-use developments. We have provided over $1.9 billion for the financing of over 30,000 apartments and have provided more financing for housing with 9 percent tax credits than any other lender in Massachusetts. With over $1 billion in private capital plus Fannie Mae and FHA programs, we offer a range of financing solutions at competitive interest rates.

Initiated in 2019, MHP's Green and Healthy Housing Program is the most popular financing program in MHP's history, providing owners and developers of affordable housing with financial incentives and expertise to make their buildings efficient, healthy, and resilient.

Fannie Mae Multifamily Affordable Housing

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 a range of 17- to 40-year term and up to 30-, 35-, and 40-year amortization. Early rate lock available up to two years prior to closing. Borrowers may also use this program as taxable take-out of a tax-exempt bond-funded construction loan. Term sheet.
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 30 months prior to closing. Up to 20-year term and 35-year amortization. Borrowers may also use this program as taxable take-out of a tax-exempt bond-funded construction loan. Term sheet.
Tax-Exempt Financing – Direct placement through one of our bank credit lines, yielding the lowest transaction costs for tax-exempt execution. Excellent rates. $1 million minimum loan size with 40-year amortization. Term Sheet.

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

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

Climate Ready Housing Program: MHP and MassHousing are administering a new state program to fund investments to reduce energy use and carbon emissions in affordable housing. 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. Term sheet.

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. Term Sheet.

Emerging Developer working capital credit lines: We can provide up to $250,000 in unsecured short-term debt to help eligible emerging housing developers expand their affordable housing development efforts. This latest iteration of our WCLOC program features lower pricing, longer terms, and lower fees for eligible developers. Term sheet.

Workforce Housing Program: MHP is committed to providing financing to increase the supply of affordable housing in the Commonwealth. Our $25 million Workforce Housing Program is a subordinate long-term loan program to create new mixed income rental developments and can also be used during a development’s construction period. Eligible developments are required to have a minimum of 20% of the units affordable at or below 80% AMI. The workforce housing units must be affordable to households with income and rents between 70% and 120% AMI. Funding is available on a rolling basis at up to $100,000/unit with a maximum of $3 million per development. MHP’s Workforce Housing Funds are only available when used with an MHP first mortgage. Term sheet.

For more information:

Director of Business Development Nancy McCafferty: nmccafferty@mhp.net or 857-317-8556.
Senior Relationship Manager Alma Balonon-Rosen: almabr@mhp.net or 585-764-6963