The Subsequent Loan Program provides additional financing to owners of existing MaineHousing-financed properties for such things as unanticipated operating shortfalls, capital improvements, property rehab, energy efficiency improvements, creation of new units, and equity takeout. The term of the loan is up to 30 years. In return for the subsequent loan, owners usually must extend affordability of the units.
Equity takeout is permitted only if MaineHousing determines that capital needs and reserves are adequately addressed.
The interest rate is currently 5.5%
Applicants must have an existing MaineHousing rental property loan in good standing, secured by a first mortgage and security agreement.
Considerations for loan approval include:
- Need for affordable units in the area.
- The property’s ability to support added affordability.
- Anticipated impact of the repairs or capital improvements on the residents.
- Improvement of MaineHousing’s mortgage security interest in the property.
- The property’s operating history.
- Whether project reserves are adequately funded.
As part of the application, applicants must assess their project current and future capital needs.
For more information, download the Subsequent Loan Program Guide and Application or contact
Asset Management Dept