The Jumpstart Germantown Loan program offers financing for the acquisition and renovation of residential properties in Germantown and its adjacent neighborhoods. The Loan Program is available to both experienced and novice developers but first-time developers are encouraged to participate in the Training Program.
The Jumpstart loan process mimics a bank loan process to help prepare aspiring developers for future funding from traditional banking institutions. Jumpstart requires loan applicants to complete an online application and attach a pro forma, comps and construction budget.
Jumpstart is more than a bank. We are a non-traditional, mission driven lender that can move quickly to help you compete in a competitive real estate market and guide you along the way.
Download a Jumpstart Germantown Loan Program flyer for additional information.
The Jumpstart Germantown Loan Program encompasses the area bound by W Cheltenham Avenue (southwest side of the street only). N Broad Street (west side), Roosevelt Boulevard (north side), Germantown Avenue (west side), Hunting Park Avenue (northwest side), Wissahickon Avenue (east side), Lincoln Drive (east side), Mt. Airy Avenue (southwest side) to Stenton Avenue (northeast side) and Ivy Hill Road (southeast side).
Up to 85% of total cost of acquisition and construction.
Funding will be advanced as work is completed. No construction funds disbursed at settlement.
Take up to 12 months to buy, construct and sell/refinance (3 month extensions available).
1st Lien placed on property – additional collateral may be required.
Lender’s title insurance policy required.
Personal guarantee of all borrowers required.
Interest only loan payments due after construction is completed.
All lender fees, other than the loan commitment fee & extension fees, can be financed.
Due to state and federal regulations loans cannot be for the borrower’s primary residence.
7.25% Annual Interest (subject to change based on Jumpstart’s cost of funds)
$1,500 loan commitment fee – up to 4 draw inspections (Each additional inspection is $250).
$275 Legal fees (rolled into the loan). Additional fee if more than 2 borrowers/members.
2% Loan Fee (rolled into the loan)
Cost to extend loan for each additional 3 month period – 2% of total loan amount.
All expenses are the responsibility of the borrower (legal, environmental, title, recording, transfer tax, etc.
Loan Application Process
Loan applications are accepted any time. After receiving your completed online application, Jumpstart Germantown staff evaluate your application and respond with questions or concerns. If your property is already under agreement, you will be contacted, usually within 24-48 hours (during business days), to schedule a site visit to review construction budget and scope of work.
If the property is not yet under agreement, Jumpstart can issue a pre-approval letter if numbers are acceptable. All pre-approvals require a complete application and can take up to one business day to process.
If your loan application is approved, we will issue a Letter of Commitment which you must sign within 15 days and return to the Philly Office Retail office with your $1,500 commitment fee. Prior to settlement, Jumpstart will need a lender’s title policy, proof of builders’ risk insurance and a copy of your LLC’s operating agreement (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. Any questions about this process will be answered after you submit your loan application. No construction funds are disbursed at closing. The borrower is responsible for funds needed to start construction. When ready, you will submit draw requests and Jumpstart will conduct inspections. You will receive a check or wire transfer for the approved amount, 3-4 days after each inspection.
Any incomplete loan applications will not be considered for funding. Loan applications must include a construction budget, estimated cost of acquisition, profit & loss statement and comparable value of similar homes in the area (comps).
The above terms and conditions are for informational purposes only and may change, from time to time, or be superseded by other terms, conditions or loan documents.
To apply, complete BOTH of the following:
Development Budget / Profit & Loss Statement / Comps Please note that this form was updated August 1, 2019 – all previous forms are no longer valid. For your application to be evaluated, you must complete this form and attach it to your application.
Please contact Angie@PhillyOfficeRetail.com with all questions and inquiries, or call (215) 247-5555 ext. 211