Acquisition Loans

Eligible Borrowers

Any community-based housing developer operating in the areas covered by Enterprise's 15 concentration cities and other locations served by Enterprise affiliates.

Intended Use of Loan

Acquisition loan funds may be used to fund any or all of the following typical costs related to the acquisition of land or buildings intended to be developed as affordable homeownership or rental housing: earnest money deposits or option payments, land or building acquisition costs, title, closing and legal costs related to acquisition closing.

Ineligible Uses

Refinancing Existing Debt.

Loan Amounts

The Enterprise Community Loan Fund’s acquisition loans are available in amounts of up to $3 million.

Interest Rate

6.50%

Loan Term

Up to 36 months.

Loan Fees

$500 for loans up to $50,000. Two percent of the loan amount for loans over $50,000. For all loans, $500 due with loan application. The balance of the loan fee is payable at loan closing and can be financed.

Legal Fees

None. Included in loan fee.

Collateral Requirements

The Enterprise Community Loan Fund finances property acquisition at up to 100% of as-is appraised value for existing operating rental properties. For vacant buildings or vacant land, guidelines typically allow financing property acquisition at up to 80% of as-is appraised value. All acquisition loans are recourse loans to the borrowing entity.

Affordability Restrictions

The Enterprise Community Loan Fund provides financing for affordable rental housing projects that serve households with incomes at or below 60% of the area median income. For affordable homeownership projects, Enterprise provides financing that serves households with incomes at or below 80% of the area median income. Mixed-income projects, whether rental or homeownership, are also eligible.

Adherence to Green Communities Underwriting Criteria

Borrowers of the Enterprise Community Loan Fund Green Acquisition Loans are expected to meet the site selection and location guidelines detailed in the Green Communities Criteria. Borrowers will be expected to engage at least one design or engineering professional as a member of the project development team who is certified by LEED (Leadership in Energy & Environmental Design), certified by the U.S. Green Building Council, or has similar green design experience or qualifications recognized by Enterprise. This consultant must be under contract to the borrower by the time the acquisition loan is closed. Underwriting of Green Acquisition Loans will include an assessment by a Loan Fund officer and Enterprise’s Green Communities Coordinator, a design professional certified in environmental design and energy efficiency to ensure that the project as proposed substantially meets The Green Communities Criteria.

Steps for Applying for Green Communities Loans

  1. Review the Green Criteria
  2. Download the Loan Application Checklist (Word, 164K)
  3. Download the Loan Narrative Form (Word, 94K)

If you have questions about where to send this application or who to work with to underwrite a loan in your region please contact:

Michael Sloss
Vice President of New Products
Phone: 410.772.2496
Email Mike