Determining a financing strategy for a project is like fitting together the pieces of a puzzle. Based on the information you have provided, this section of the Template automatically calculates the portion of your project's funding that will come from various funding sources.

The amount of the First Mortgage is calculated by the Template based upon typical funding constraints imposed by lenders. The Template calculates the dollar amount of the first mortgage by applying two criteria:

• Debt Service Coverage
• Loan to Value

The amount of the first mortgage is automatically calculated to be the lowest of the first mortgage constraint numbers. The First Mortgage Constraints page has more information on these first mortgage constraints.

The other automatically supplied funding amounts in this section include:

• Amortizing Second Mortgage, which is a type of loan that some projects take out to supplement the funds received from the first mortgage. Like conventional loans, amortizing second mortgages also require regular payments of both principal and interest.
  
  
• Deferred Payment Loans (1 and 2), which do not amortize and are paid only when the property is sold.
  
  
• Developer Investment, which is the amount of funding being provided by the project's equity investors.
  
  
• Tax Credit Equity, which is obtained through participation in the Low-Income Housing Tax Credit Program.
  
  
• Grants or Donated Land (1 and 2), which are of funds or land donated to the project. A cash grant is given with no repayment expectation. Contributed land is the value of land contributed to a project either through a leasing arrangement or a donation.
  
  
• Other Financing, which refers to funds from other sources, excluding amortized debt from other sources.
  
  
• Custom Loans (1 and 2), which are loans with complex or irregular schedules of payments. Create custom loans on the Custom Loans tab of the Template.