Traditional Mortgage Loans
The Norwich Housing Corporation provides traditional mortgage loans to alumni corporations that intend to purchase, build or renovate a chapter house.
On average, traditional mortgage loans from the NHC have higher Interest rates compared to customary mortgage lenders, so potential borrowers are encouraged to explore multiple financing options. For each loan request, the interest rate is determined by the criteria contained in the NHC Loan Pricing Matrix. The average interest rate for this loan program is 5.25% as of December 2024. The term is typically 5 to 30 years.
Life Safety Loans
Life Safety Loans are offered at a low interest rate for financing housing upgrades that are necessary for the reduction of serious safety risks. The interest rate for all Life Safety Loans is 4.0%. The maximum term is generally 5 to 7 years, and the loan is secured by a mortgage.
The NHC determines whether or not proposed facility improvements qualify for financing under this loan program on a case-by-case basis. However, items that typically qualify include fire-suppressing sprinkler systems, range hoods, and fire alarm systems. For each loan request, the NHC has the absolute discretion to deny financing for items that are inconsistent with the nature and purpose of the Life Safety Loan Program.
Frederick W. Ladue Loans (Emergency Loans)
The Frederick W. Ladue Loan is a short-term, unsecured loan that provides immediate financing in emergency situations (e.g. broken boilers, holes in the roof, etc.). Applications can be completed and reviewed quickly, and funds can be made available on short notice.
The amount granted for a Ladue Loan is generally less than $10,000. Because Ladue Loans are unsecured, they have a 10.0% interest rate. The term is typically 1 to 3 years.