Diversified Mortgage FundsĀ 

Since 1996, Boston Capital Finance (BCF) has offered comprehensive financing options for tax credit properties including taxable fixed-rate construction loans, taxable and non-taxable fixed-rate permanent loans, and fixed-rate forward commitments. These investments provide corporate investors the benefit of diversified mortgage pools with the following benefits:

  • A collateral pool of first-priority mortgages with national geographic diversification
  • Each loan will have a significant amount of tax credit equity provided by either Boston Capital or another national tax credit syndicator
  • Borrower diversification
  • Predicable cash flows as every loan has a fixed interest rate and all permanent mortgages carry a 10-year lockout and yield maintenance provisions
  • Higher yields than the investors would usually earn on a typical “one off whole loan”
  • All loans underwritten in substantial conformance to Fannie Mae DUS guidelines
  • According to multiple Ernst & Young surveys, multifamily properties financed in part with low income tax credits have the lowest default risk of any real estate asset class
  • The ultimate yield of each fund will be the weighted average coupon of each mortgage included in that fund which is especially beneficial in a rising interest rate environment
  • All loans serviced in-house by BCF