Affordable Housing and LIHTC Financing

We offer multiple financing options.

Legacy Bank and Trust is a leader in the Midwest for LIHTC financing. With over $150M in developments financed, they have a quick and efficient process to get any development to closing. There are multiple options when it comes to what can be financed for a LIHTC development.

Commitment Letters can be obtained within 48 hours of receiving allocation application and market study.

Line of Credit

  • Line of credit that can be used for land acquisition or pre-development closing costs
  • Payments are interest only and required monthly
  • Maturity can go up to 12 months
  • Typically, automatically paid off with construction funding
  • Can use internally prepared loan documents

Letters of

  • Internally prepared loan documents
  • Loan may be unsecured depending on strength of developer
  • Works with beneficiary to determine structure of letter


  • Loan can go up to 24 months
  • Subsidized rate and origination fee through the Capital Magnet Fund Award
  • Attorney prepared loan documents
  • Works with syndicator to complete any needed due diligence


  • Can go up to 35-year amortization
  • Subsidized rate and origination fee through the Capital Magnet Fund Award
  • Can fix rate up to 17 years
  • Attorney prepared loan documents

Subsidization with the Capital Magnet Fund

As a CDFI, Legacy Bank and Trust applies for annual grants to help subsidize the financial burden that developers often face while completing a Low-Income Housing Tax Credit development. The Capital Magnet Fund offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide.

On a national level, the Capital Magnet Fund has generated $20 of additional investment for every $1 of award funding.

As a developer, what does the Capital Magnet Fund mean to you?

Loan Amount: $2,500,000
Interest Rate: 6.25%
Amortization: 30 years
Annual Payment: $186,507
Origination Fee: 2 point ($50,000)

Loan Amount: $2,500,000
Interest Rate: 5.50%
Amortization: 35 years
Annual Payment: $162,437
Origination Fee: 1.25 Point ($31,250)

If you finance with Legacy Bank and Trust the CMF subsidy would allow a savings of $42,820 for your first year after conversion based on the examples above. Call Brett Magers or Eric Leonard at 417.823.9600 to discuss how Legacy Bank and Trust can subsidize the financing for your next development.