Frequently Asked Questions

Is my nonprofit organization eligible?

Your nonprofit must have been in existence for three years and be designated a 501(c)(3) organization. Loan proceeds may not be used for educational institutions, churches, or organizations sponsored by or affiliated with churches or fraternal organizations.

What if our income stream is dependent on grants and gifts?

Borrowers should have sufficient revenues to service the loan payment and demonstrate ongoing cash flow ability. CHFA will evaluate the proportion of grant proceeds received, the sources, the history of the grants and contributions, and the likelihood for continued funding.

What are the rates, terms, and fees?

CHFA’s nonprofit real estate program offers competitive rates fixed for up to 30 years. Borrower pays a 1% commitment fee and closing costs. Additional fees may be applicable for borrowers who receive tax-exempt financing.

What equity and security does CHFA require?

Typically, 10% equity is required. CHFA will hold a first lien on all property financed.

Can I lease out part of the building?

Yes. Depending on whether the nonprofit is financing new construction or acquisition of an existing building, a small portion may be leased. However, the borrower must be able to make the loan payment without reliance on the lease income. Additionally, tax exempt borrowers may have limitations on leasing any portion of this real estate.