Commercial Loan Programs

Types of Loans

CHIF’s Neighborhood Rebuilder Loan Program provides several types of loans to support new construction or rehabilitation of residential units in neighborhoods throughout Connecticut. The types of loans are:

Summary of CHIF’s Loan Products rates and terms

Neighborhood Rebuilder Construction Loans

CHIF’s Neighborhood Rebuilder Program offers developers short term construction loans. The rate is 6.5% for 12 months*. 

In addition, CHIF’s Neighborhood Rebuilder Program may provide a source of subsidies for development to pay for the "appraisal gap" that exists between the total development cost and the after-rehabilitated appraised value of the property. After rehabilitating the unit, the new homebuyer obtains a permanent mortgage based on the appraised value of the completed property, and assumes the appraisal gap (the second mortgage) subsidy from the developer. This "silent," or "soft" second mortgage is forgiven after a short term, usually five to ten years.

Learn How the Financing Works

Neighborhood Rebuilder Construction Loan term sheet

Neighborhood Rebuilder Predevelopment Loans

CHIF provides loans of up to $100,000 to developers to pay for costs associated with the preliminary planning and design of affordable housing. Loans are provided at 1%-3% for 12 months* for new construction and rehabilitation projects. This special revolving loan program is funded with grants from the Melville Charitable Trust and the Connecticut Housing Finance Authority (CHFA). 

Predevelopment Loan term sheet

Neighborhood Rebuilder Interim Bridge Loans

CHIF provides bridge loans to developers for interim financing. Loans are provided at 3% to 6.5% for up to 12months*. 

Interim Bridge Loan term sheet

Neighborhood Rebuilder Permanent Loans

CHIF sets rates and reviews requests for permanent affordable housing project loans as funds are available. 

* Terms and rates are subject to change