On a limited basis, USAFG Builder Finance also provides
homebuilders mezzanine debt loans for usually up to 20% of the
appraised value of the project. These loans are junior only to
other USAFG facilities and supply homebuilders with an
alternative to raising equity capital from third parties to fund
their projects. Mezzanine debt loans satisfy the last claim
capital requirement, and provide builders with a one-source
financing option. USAFG’s mezzanine debt loans are an
extension of the USAFG’s other facilities and most frequently
accompany A&D loans.