Land and Pre-Development Lending Program

LAND FINANCING TO A HUD 221(d)(4) CONSTRUCTION LOAN

Leverage X-Caliber’s expertise and creative structuring for a land acquisition/refinance to a HUD 221(d)(4) construction loan. We offer fast execution, flexible prepayment options, and a seamless transition to HUD construction financing.

ELIGIBLE PROPERTIES

Undeveloped or underutilized urban or suburban parcels zoned for multifamily residential use, with access to amenities and infrastructure

Loan Amount

$3MM – $20MM

INTEREST RATE

Fixed rate, deal dependent

BORROWER

For-profit or not-for-profit domestic single-asset entity

GUARANTOR

Typically, “warm-body” guarantor required, but exceptions considered

PERSONAL LIABILITY

Full recourse

SECURITY

First mortgage and first-priority interest in all leases, rents, income, and profits, and all other personal property, accounts, escrows, and reserves

MAXIMUM LOAN

Up to 60% LTC/LTV

TERM & AMORTIZATION

Up to 24 months with extension options available; typically interest only for term of mortgage

ESCROWS

Debt service, predevelopment costs, tax, and insurance escrows are typically required

ORIGINATION FEE

1.0% – 2.0% of original loan balance

EXIT FEE

Negotiable

EXTENSION FEE

Negotiable

THIRD PARTY REPORTS

Appraisal, Phase 1, Market Study are required

Additional Conditions

Sponsor must successfully obtain an encouragement letter from a HUD concept meeting, prior to closing

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