Commercial Construction Mortgages

• Construction of a new building
• Construction of multi-tenanted buildings including retail, professional, residential, and industrial
• Additions and/or renovations
• Construction of one to four family homes for resale
• Condominium Development
• Other Development loans

• A DCU Commercial Construction Mortgage is a Permanent Mortgage.
• Commercial Construction Mortgage Loan amounts are from $100,000 to $5,000,000.
• Business owners, investors, and experienced contractors are eligible to borrow.
• All mortgages not granted in individual name(s) will require the guaranty of the principal(s). If a building owner is occupied, the business will also guaranty the loan.
• Commercial Construction Mortgage period terms up to 2 years followed by up to a 10 year permanent period.
• Interest only payments during construction.
• Interest rate is based on the credit, loan-to-value, debt service coverage, and other credit related factors.* All loans will float at the Wall Street Prime Rate plus a spread.
• Commercial Construction Mortgage advances will be based on a pre-approved schedule.
• Points are 1% or less payable at closing.
• Collateral: first position on the property.
• Up to 75% Loan-to-Value (of the value or cost, which ever is lower). All liens on the property including DCU's first mortgage and other secondary mortgages cannot exceed 75% loan-to-value.
• Equity Injections: The owners must inject a minimum of 25% of the hard costs of the project plus the soft costs. In certain cases, additional collateral may be substituted for a portion of the cash injection requirement.

• Businesses have to be in business for at least 18 months.
• Contractors have to have a minimum of 5 years of experience.
• Property owner must be in Massachusetts, New Hampshire, or Rhode Island.
• Personal Credit must be satisfactory.

Digital Federal Credit Union 220 Donald Lynch Boulevard PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797