Who We Are
Jumpstart Kensington empowers Northern Kensington residents to become developers of their own neighborhood through quality, community-focused real estate development.
Jumpstart Kensington is modeled after the original Jumpstart Germantown Program, which was created by Ken Weinstein to facilitate the revitalization of the Germantown neighborhood of Philadelphia through high quality residential renovations.
The Jumpstart Kensington Loan Program provides financial resources for the acquisition and construction of 1-2 unit residential properties in Kensington. The Loan Program is available to both experienced and novice developers who graduate from the Jumpstart Training Program.
South – Lehigh Avenue
West – N. 5th Street
North – Sedgley Avenue/Erie Avenue
East – Castor Avenue/Aramingo Avenue
- Graduate of Jumpstart Training Program
- Residential properties with 1-2 units (no commercial)
- Impact Loan Fund (ILF) will finance 85% of the total acquisition and construction cost
- Confirmation of budget acceptability by Lender’s inspector
- Borrower provides 15% cash equity contribution paid at settlement (or prior to loan funding)
- Funds are disbursed as work is completed (no fund advances)
- Interest only at 8% fixed
- Loan Term 12-month construction, lease-up or sale term
- A 3-month extension with additional fee
- First lien on the property
- Lender’s Title Insurance
- Personal guarantee of Borrower and Spouse, if applicable
- Credit Check required of all borrowers (no minimum score, but explanation of credit concerns may be required)
- Origination Fee: 2%
- Commitment Fee: $1,500 (covers 4 inspections; additional inspections are $250 each)
- Legal Fee: $250 (if using form docs)
- Lenders Title Insurance and Recording Fees
- Interest begins to accrue as funds are disbursed
- Interest payable out of loan until construction is complete
- Borrower has 12 months from settlement to finish construction and sell or refinance the property to pay off the Jumpstart Loan
- Borrowers intending to hold the property as rental may access Impact Loan Fund (ILF) three-year mini-permanent loan
- 15-20% profit projection on resale (after expenses)
- 10-15% return on income for operating properties
- Cashflow from estimated lease rates to cover debt service at 1.20x
- Loan applications are accepted anytime. After receiving your completed online application, Jumpstart Kensington staff will evaluate your application and respond with any questions or concerns.
- If the property is not yet under contract, we can issue a pre-approval letter if the application is accepted. Please note all pre-approvals require an application and 72 hours.
- If your loan application is approved, we will issue a Letter of Commitment which you must sign within 15 days and return to the Impact Loan Fund office with your $1,500 Commitment Fee. Before settlement, we will need a lender’s title policy, proof of builder’s 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. Please note no funds are distributed at closing. When ready, you will submit draw requests and we will conduct inspections; you will receive a check 3-4 days after the 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. They may change, from time to time, and be superseded by other terms, conditions, and loan documents.
The Jumpstart Kensington Loan Fund was launched and funded in collaboration with: