Loan Programs

MHP is a leader in permanent financing for affordable and mixed-use developments. We have provided over $1.4 billion for the financing of over 26,000 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.

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 35- to 40-year term and 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

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

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.

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