Construction Mortgages

• A DCU Construction Mortgage is a Permanent 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.
• Construction 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.
• Construction 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.