GMHF Loan Products

With long-term and short-term financing products, developers will find options to make projects possible. We also offer technical assistance to support planning and implementation of affordable housing solutions.

Which Loan Product Fits Your Needs?

Use our term sheet for details on rates and fees for GMHF lending products.

Interim Loans (Multifamily)

We provide short-term financing (up to 36 months) to support multifamily projects at various stages of development.

Predevelopment Loans

Predevelopment loans cover the cost of a project at the beginning stages. This financing can be used to pay for third-party reports, fees, deposits, or other expenses prior to closing on construction and permanent financing.

Acquisition Loans

These loans provide financing for the acquisition of land or buildings prior to closing on construction or permanent financing. This financing can be used to fund a significant portion of the purchase price.

Construction/Bridge Loans

Construction/bridge loans cover the cost of building new or improving existing housing units and bridge permanent sources until they are funded. This financing can be used for costs related to new construction, adaptive reuse, or acquisition/rehabilitation projects.

Reach out to the GMHF Lending team to learn more about any of these loan products.

Permanent Loans (Multifamily)

We provide long-term amortizing multifamily financing for building new and preserving existing affordable housing.

Permanent First Mortgage

Our first mortgages offer long-term financing for multifamily properties with up to a 25 year term (up to 40 years amortization).

Construction-to-Permanent First Mortgage

This financing converts a construction loan for building a project into a long-term first mortgage with up to a 25 year term (up to 40 years amortization).

Mezzanine Loans (Second Mortgage)

This financing supports the development of new or existing housing by replacing owner equity for a term of up to 15 years.

Tax Increment Financing (TIF) Loans

This additional financing can be included with a first mortgage to capitalize on TIF payments from a municipality for a term of up to 26 years.

Want to learn more? Our loan officers are here to help. Connect with us today!

Small NOAH Loans (Multifamily)

We provide financing to preserve Small NOAH (Naturally Occurring Affordable Housing) properties with the goal of keeping this housing affordable and well-maintained for residents. We offer predevelopment loans, amortizing first mortgages, and mezzanine loans for projects with 5-50 units across the state of Minnesota.

Predevelopment Loans

Term: up to 36 months
Amortization: Interest only
Interest Rate: 30-day Average SOFR + 2.00%

First Mortgage

Term: 10-25 years
Amortization: Up to 40 years
Interest Rate: Fixed rate for term of loan starting at 30-year Treasury + 2%
Loan to Value: up to 80%
Debt Coverage Ratio: 1.2 in Year 1

Mezzanine Loan

Term: 10-15 years
Amortization: Up to 35 years or interest only
Interest Rate: Fixed rate for term of loan, starting at 2% over the corresponding Treasury rate
Loan to Value: Up to 95%
Debt Coverage Ratio: 1.10

Small NOAH financing requires that at least 75% of the rental units be income-and rent-restricted at 80% area median income (AMI), and 40% of units at 60% AMI or 20% of units at 50% AMI. Up to 25% of units may be unrestricted at market rates.

Contact the GMHF team today for more details on our Small NOAH loan products.

NOAH Impact Fund (Multifamily)

We also provide financing to preserve NOAH (Naturally Occurring Affordable Housing) projects with 50+ units through our NOAH Impact Fund.

This social impact fund works to keep Minnesotans in their communities by keeping NOAH units from losing affordability while offering investors a double bottom line of social return and economic return.

Learn more about the NOAH Impact Fund.

Interim Loans (Single Family)

We can provide short-term financing to support the construction of affordable single-family homes.

Single-Family Construction Line of Credit

This financing can be used for the construction or rehabilitation of single family homes for a term of up to 36 months.

New Markets Tax Credits

We can also offer financing for the construction of new single family homes using New Markets Tax Credits (NMTC) for a term of up to 24 months.

Connect with our loan officers to learn more about these financing options.

The Process

Step 1: Review Loan Products and Term Sheets

If you’re interested in learning more about how GMHF can support your project, check out our most recent term sheet and review our loan products.

Step 2: Connect With a Loan Officer

Once you have your project proposal and completed real estate pro forma, and connect with a loan officer, listed below, to start the process of determining your project feasibility and preliminary loan sizing.

Step 3: Underwriting

After the initial feasibility phase, your dedicated loan officer will begin the underwriting process. During this process, you’ll likely need to provide additional financial and project-related information and a due diligence deposit for third-party reports to get final loan approval. Your loan officer will provide details along the way and guide you through GMHF’s approval process.

Step 4: Closing

For projects that are approved, your loan officer and assigned loan closer will guide you through the closing process. Loan closers will coordinate with you and any other parties to successfully close the approved financing for your project.

Relevant Resources

Do you have questions or need support? We’ve got you covered! Our resources library and technical assistance are available for you.

Learn More About Minnesota Equity Fund Companion Lending

For projects eligible for low-income tax credits (LIHTC), we pair GMHF loan products with our joint venture tax-credit syndicator Minnesota Equity Fund, deepening affordability for projects.

Learn More About Minnesota Equity Fund