Pre-Construction Loans

Overview

Detroit Development anticipates that most borrowers will be small to medium-sized developers, rehabbers, and contractors. We will also consider projects being developed by non-profit developers, including community development corporations and faith-based institutions with proven track records. Detroit Development will make pre-construction loans into real estate development projects that can yield positive social impact in low and moderate income Detroit neighborhoods.

Criteria, Loan Size and Terms

TO QUALIFY FOR A PRE-CONSTRUCTION LOAN, PROJECTS SHOULD MEET ONE OR MORE OF THE FOLLOWING CRITERIA:

  • Project is located in or adjacent to Detroit neighborhoods that are lower income
  • Create for-sale or rental housing that is affordable to low/moderate income households in Detroit
  • Create homeownership opportunities for low/moderate income households in Detroit
  • Create jobs for lower income Detroit residents
  • Strengthen access to community services for lower income Detroit residents
  • Strengthen commercial districts in predominately low to moderate income Detroit neighborhoods
  • Otherwise economically or socially strengthen predominantly low/moderate income Detroit neighborhoods
  • Pre-construction loan amounts range from $50,000 to $200,000
  • Most loans will have terms of 6 to 24 months

Use of Proceeds

PRE-CONSTRUCTION LOAN PROCEEDS CAN BE USED FOR THE FOLLOWING:

  • Infrastructure improvements
  • Construction of models
  • Fa├žade improvements