Neighborhood Rebuilder: How the Financing Works

Chiffy The example below illustrates a typical financing scenario under the Neighborhood Rebuilder Program. A bridge loan is also included as a source of financing in this example.

Location of property: Hartford, Connecticut
Building Type: One unit, single family home
Profile of Homebuyer: Annual income of $33,000 to $55,000; 4 person family

Total Development Costs $115,000
After-rehab value of the property $90,000
Financing Shortfall filled with Gap Subsidies $25,000
Sources of Funds - Construction Financing
CHIF Construction Loan (95% LTV) $85,500
CHIF Bridge Loan (bridges Municipal Appraisal Gap Program) $20,000
CHIF Subsidy $5,000
Owner Equity $4,500
Total Sources $115,000
Sources of Funds - Permanent Financing for Homeowner
First Mortgage and Homeowner's downpayment $90,000
Municipal Appraisal Gap Program $20,000
Assumption of CHIF Gap Subsidy $5,000
Total Sources $115,000