Mortgage Insurance Guarantees
MassDevelopment can provide a guarantee on a portion of a bank real estate loan or tax-exempt bond. Our guarantee covers the difference between a bank’s maximum allowable loan advance rate and up to 90% of the property value, thereby increasing the amount of financing available to your business. Our mortgage insurance guarantee program offers:
- Loan guarantees up to $2,000,000
- Loan advance rates up to 90% of the value of the real estate
Guarantees are also available for charter school loans, tax-exempt bonds, loans to companies that export products to international markets, and working capital loans to manufacturers.
Sovereign Bank provided Triple Play Car Wash LLC of Attleboro a $7.5 million loan to refinance existing debt. The loan was supported by a $540,000 MassDevelopment mortgage insurance guaranty. Original loan proceeds were used to purchase land and construct a convenience store, gas station, car wash, and a car detailing center.