Low-Mod 504 1st Mortgages

Ideal for Multi-Purpose Properties in New Market Tax Credit Areas

Low-Mod Eligibility & Terms –  Click Here

For list of Eligible Counties click here

CDC Capital Markets partners with Morgan Stanley to provide banks with access to 100% direct funding or purchases of SBA-504 first mortgages. With direct funding, Morgan Stanley books the first mortgage loan on its balance sheet. On purchases, the selling bank books the first mortgage loan on its balance sheet, then sells it to Morgan Stanley.

Bank Benefits:

  • Selling bank receives flat 3% premium


  • For multi-purpose properties in low to moderate income areas
  • Must be in an LMI census tract. Check subject property address here:
  • Whole loan purchases
  • Also available in select rural counties across the country
  • DSCR of 1.0 or better, multi-purpose properties, community impact, job creation
  • 3 years interest-only followed by 27-year amortization fixed for 7 years at 5-year libor swap + 175 basis points