Financial Services

Multifamily Construction Lending

CSG offers more than 25 years of construction lending and loan administration capabilities which exceed $1.5 billion in all 50 states. We work with developers demonstrating a successful track record of multifamily development in all types of communities. Our experienced team ensures that all aspects of our construction lending programs are effectively managed from application to servicing to meet the unique needs of our clients for both conventional and affordable multifamily housing loans. Our goal is to deliver competitive rates, terms, loan proceeds and outstanding service.

Typically, we provide loans from $500,000 to $25 million; however, larger loans may be considered based on project specifics. The terms below are provided as guidelines and are subject to change without notice.

CSG’s Affordable Construction Lending Program

  • Loan sizes range from $500,000 to $25 million.
  • Term ranges from 12 to 24 months.
  • Interest rates: spread over Wall Street Journal Prime Rate.
  • Guaranty is full recourse for project completion and loan repayment.
  • Subordinate mortgages may be permitted subject to secondary market loan guidelines and completion of lender due diligence and underwriting.
  • Prior to closing, a suitable permanent loan commitment must be in place.
  • Gap funding permitted subject to due diligence and underwriting.
  • Typical due diligence fees apply which cover the costs of third party reports (appraisal, market feasibility if rental achievement is a requirement of permanent loan commitment, phase I environmental and plan & cost review) and other lender due diligence costs. The borrower is responsible for legal fees and customary closing costs.

Agency Lending Programs – Affordable or Conventional Multifamily

CSG also provides access to the agency lending solutions of FHA/HUD, Fannie Mae and the USDA.

  • FHA/HUD Section 221(d)(4) Program – for construction or substantial rehabilitation of multifamily properties, including market rate, moderate income and subsidized developments. Find out more about FHA/HUD Lending.
  • USDA Section 538 Program – for new construction or to rehabilitate existing rural apartment units for residents with low and moderate incomes. Find out more about the USDA Section 538 Program.
  • Fannie Mae DUS –¬†through various partnerships, CSG provides access to Fannie Mae construction lending, as well as permanent debt and predevelopment loans. Contact us for more information.

CSG’s Conventional Construction Lending Program

  • Loan sizes range from $1 to $25 million.
  • Term ranges from 24 to 26 months.
  • Interest rates: spread over Wall Street Journal Prime Rate.
  • Guaranty is full recourse for project completion and loan repayment.
  • Subordinate mortgages may be permitted subject to secondary market loan guidelines and completion of lender due diligence and underwriting.
  • Prior to closing, a suitable permanent loan commitment must be in place.
  • Typical due diligence fees apply which cover the costs of third party reports such as the appraisal, phase I environmental, plan & cost review, and other lender due diligence costs. The borrower is responsible for legal fees and customary closing costs.
  • Call us for current rates.

Please contact us to discuss your project’s unique characteristics and find out how we can help you meet the challenges in building new multifamily housing communities.


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