The BCL Commercial Multi-Family Loan Program is an exceptional financing opportunity for experienced developers (including non-profits) and individual investors with a vision to rehabilitate specific properties in a single project in low- and moderate-income neighborhoods.

Designed for properties with a variety of potential uses, this flexible program is one of the best financing options for small- to medium-sized real estate development projects. This product can be an acquisition-construction loan or a construction/mini-perm loan.

Property Type:

Rental apartments, single home for rental or home ownership, commercial buildings, community facilities or mixed-use commercial (storefront with rental units above).


  • No bars liquor establishments, gas stations or establishments that store or handle hazardous materials.
  • Rehabilitation is required (minimum $25,000 per unit).

Construction Term:

9, 12, or 18 months construction period.

Mini-Perm Term:

Mini-perm 5-7 years; Amortization: 20 years.

Interest Rate:

  • WSJ Prime plus 200 basis points (2%) 6% floor.
  • Floating, interest-only during construction; amortizing fixed rate at completion.


  • 75% of “as-is” acquisition or purchase price
  • Maximum 90% of construction costs
  • Maximum “as completed” Loan to value 80% of appraised value

Debt Coverage Ratio:

1.15 (Ratio of Net Operating Income to Debt Service payments) required for rental property.

Maximum Loan:

$1,000,000 (maximum also applies as maximum exposure)

Loan Features:

BCL will require an interest rate reserve to cover the estimated amount of interest during the term of the loan. Additional, BCL will require that a 10% (Min.) contingency be added to the cost estimates. BCL may require the creation either through the loan, borrower cash or an escrow account of a Maintenance Reserve consistent with industry standards.


BCL requires that all contractors and sub-contractors be able to provide verification of being licensed in the State of Maryland, provide proof of requisite insurance and completion bonds. And must be approved by BCL before the start of any construction activity.

Technical assistance:

BCL can provide technical assistance to refine the development of plans and scopes of works. Based on the amount of assistance required , BCL may require a reasonable fee for this service.


  • 1%-2% of the loan amount based on risk and DSCR
  • Additionally, we require payment up front for estimated number of draws at a cost of $150 per draw. Additional draws will require additional payment of fees. Fees for appraisal for loan documents will be paid by the borrower as needed to complete the underwriting of the loan. Legal fees and reasonable settlement expense are the responsibility of the borrower.


Borrower must have an acceptable credit record. While BCL does not have a minimum credit score, credit records with a pattern of recent late payments of debt, delinquencies, foreclosure, bankruptcy and/or collection may disqualify a potential borrower.


  • 1st lien position on all property acquired or rehabbed with this product
  • 1st or 2nd lien position on any BCL required secondary existing real property or liquid assets may be required based on risk and DSCR
  • Assignment of leases and rents, sales contracts, management agreements and contractor’s agreements.
  • Personal Guarantees required by all principals


  • Borrower must complete an Environmental Review Questionnaire for each property prior to acquisition.
  • The Questionnaire may result in BCL requiring a Phase 1 Environmental prior to releasing funds for acquisition.

Baltimore Community Lending reserves the right to waive certain conditions based on the borrowers, credit, business experience, capital, or other strong factors which may mitigate risk. Baltimore Community Lending likewise may ask for additional requirements such as additional collateral, guarantees or other instruments based on the information gained during their review and underwriting.
Terms are subject to change without notice. An advance appointment with a BCL Loan Officer is highly recommended for all loan applicants. Other terms subject to approval of Loan Committee.