Comprehensive Financing Options
Since 1996, Boston Capital Finance (BCF) has offered comprehensive financing options for tax credit properties including fixed-rate construction loans, taxable and tax-exempt permanent loans, and fixed-rate forward commitments.
BCF is actively closing loans in the following funds:
Boston Capital Intermediate Term Income Fund
- The Fund provides fixed-rate construction financing to Boston Capital sponsored 9% LIHTC properties.
- These are full recourse interest only construction loans. There is no negative arbitrage given that the developer will make monthly construction draws and pay interest on the outstanding balance each month.
- BCF provides an expedited underwriting and closing process as all credit decisions are made in-house.
- All construction draws are processed in-house by BCF staff. This allows us to fund most draws within 48 hours after receiving a request.
- BCF can provide a fixed-rate forward commitment for the permanent mortgage, creating a true one-stop shop for its developer partners.
Boston Capital Long Term Mortgage Fund
- This Fund provides both taxable (9%) and tax-exempt (4%) fixed-rate forward commitments for LIHTC properties.
- These commitments are available for transactions syndicated by Boston Capital or by another nationally recognized tax credit syndicator.
- The interest rate will be locked prior to the issuance of the commitment letter and the loan will be funded once construction is completed and the project has stabilized.
- Each loan included in this Fund will be non-recourse with the exception of customary carve-outs.
- Because each loan will be funded once the project has stabilized, there will be no negative arbitrage.
- The Fund allows BCF to fund true unenhanced private placement 4% bond transactions. As such, we can typically close a transaction in less than 90 days.
- Forward commitments are available for up to 30 months.