Jumpstart Philly Loan Program
If you’re looking to finance your first, or next, investment project, we’ve got you covered.
Whether you’ll buy & sell, or buy & hold, we can help.
With below market interest rates, quick approvals, and no payments until after the final draw, Jumpstart Philly is a smart choice.
Eligibility
Financing for projects anywhere in the City of Philadelphia
Open to Anyone - Not Just Jumpstart Grads
Jumpstart Training Program Graduates within the City & Norristown receive a 1/2% interest rate discount
Credit Report & Proof of Funds
For buy & hold a minimum score of 680 required for all borrowers. No minimum score for buy & sell.
Proof of Funds needed to ensure borrowers have funds needed to complete the project.
Focus on Residential properties
Mixed-use projects considered for more experienced developers (must have residential component)
Property needs to be vacant (with very few exceptions)
Loans are not for single family owner-occupied properties
Loan Guidelines
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Loans up to 85% of the total cost of acquisition and construction. Borrower provides the remaining 15% of the total project cost at settlement.
For mixed-use properties, we’ll consider 80% LTC
For properties owned free & clear, we’ll consider 100% construction-only financing
Maximum loan per property: $350,000 for one unit, increase by $50,000 for each additional unit
Maximum amount outstanding for a borrower is $750,000
Funding advanced as work is completed. No construction funds disbursed at settlement. Borrowers need funds to get work started.
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Interest-only loans at the following fixed rates:
8.30% - Jumpstart graduate rate (for graduates of a Philadelphia or Norristown Jumpstart Training Program)
8.80% - Non-graduate rate
12 month term - borrowers purchase, renovate, and either sell or refinance within one year. (Up to two 3 month extensions available)
Additional Requirements:
1st Lien placed on property
Lender’s title insurance
Personal guarantee(s)
Satisfactory credit (for Buy & Hold projects, minimum credit score of 680 for all borrowers)
Interest-only monthly payments due after final draw
Affordability restrictions apply: See chart for rent/sales restrictions.
Rental properties at 70% or less AMI (Area Median Income)
For-sale properties at 90% or less AMI (Area Median Income)
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$225 Site Visit Fee - due prior to initial site visit (non-refundable)
$1,275 Loan Commitment Fee - due upon loan approval (non-refundable, but transferrable to another property if loan does not close)
$275 Legal fees - Rolled into the loan, additional fee if more than 2 borrowers/members
2% Loan Fee - Rolled into the loan
Potential Fees:
2% Extension Fee - loans exceeding the initial term may receive up to two 3 month extensions at 2% of the total loan amount.
$250 Additional Inspection Fee - if borrower requires more than 4 draw inspections
Application Process
When to Apply?
Loan applications are project specific. You’ll submit a loan application once you’ve identified a property.
You can apply prior to making an offer on the property, after the property is under agreement, OR if you own the property free & clear.
How to Apply?
Online Loan Application
You will need:
Borrower Information
Property Information
Project Information (exit strategy, end use, etc…)
Estimated Project Numbers
Basic Scope of Work
Contractor Information (if applicable)
Addresses for Comps (within 6 months and 1/2 mile)
After receiving your completed online application, we will review and send you a pre-generated proforma using the information from your application. If you’d like, you can complete the proforma ahead of time and attach to your application, which will reduce our evaluation time.
What Happens Next?
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We will look closely at your project numbers; construction budget, comps, and operating expenses to determine if the project is feasible. The more detail you provide in your scope of work, the easier it is for us to evaluate. Double check that your scope of work aligns with your construction budget!
If you’re holding the property, we’ll look to ensure your permanent loan (refinance) can pay off the Jumpstart loan and interest. We’ll also look to see if the DCR (Debt Coverage Ratio) is 1.25 or more.
If you’re selling the property, we need to see a healthy net margin, typically at 20% or more.
We need to see realistic numbers in the proforma. Do not change construction numbers, ARV (after rehab value), and operating expenses just to “make the project work”.
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If the application/proforma are satisfactory, we will schedule a site visit within 1-3 business days.
$225 site visit fee
Borrower must be present
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Jumpstart Philly can issue a pre-approval letter if the project numbers are acceptable.
All pre-approvals require a completed application and proforma
Final loan approval will be contingent on a satisfactory site visit and credit report
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If your loan application is approved, we will issue a Letter of Commitment
Sign within 15 days
Pay loan commitment fee ($1,275).
Prior to settlement, we will require a lender’s title policy, proof of property liability insurance, and LLC docs (if applicable).
At loan closing, you will be asked to review and sign loan and mortgage documents in order to receive funding for your project. Please note all borrowers (including all members of the business entity, if applicable) will be required to sign the loan documents.
No construction funding will be disbursed at closing.
The borrower is responsible for funds needed to start construction prior to the first draw.
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4 draws included in your loan
Can be requested at any time, but ONLY for work already COMPLETED.
Each additional draw, beyond 4, will cost $250 each
When you’re ready to submit a draw, you will complete the provided Draw Request Form and notify us via email.
An inspector will reach out to you to schedule a time to meet at the property.
After the inspection, you will receive funds, via ACH, within 3-4 business days.
Borrower must be present at draw inspections (and we ask that contractors are not present so the inspector can speak candidly)
Our inspections are not City L+I inspections so you will need to schedule any permit inspections directly with the City Inspector.
The above terms and conditions are for informational purposes only. They may change, from time to time, and be superseded by other terms, conditions, and loan documents.