Neighborhood Rebuilder Program: How the Financing Works
Neighborhood Rebuilder: How the Financing Works
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
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.