Underwriting & Risk Management
Disciplined Credit. Defined Repayment.
KIRBI Capital evaluates both borrower-level and property-level risk, with particular attention to how — and from what source — a loan is expected to be repaid.
Borrower & Sponsor
Borrower-level review
- Borrower and guarantor capacity
- Construction team
- Contractor licensing
- Construction contract
- Insurance
- Environmental review
- Public funding commitments
- Takeout documentation
Project & Collateral
Property-level review
- Loan-to-cost
- Loan-to-value
- Sources and Uses
- Construction budget
- Hard and soft costs
- Cost-to-complete
- Appraisal
- Title
- Lien priority
- Stabilized NOI
- DSCR
- Affordability restrictions
- Regulatory compliance
Construction Controls
Funds advance against verified progress
Construction administration is a credit function. Draw controls are applied throughout the construction period.
- Draw requests
- Invoices
- Schedule of Values
- Inspection verification
- Lien waivers
- Stored materials
- Cost-to-complete
- Change-order tracking
- Project milestones
Construction Risk
Construction Risk Is Credit Risk
Affordable-housing lending cannot be separated from construction execution. A project can have strong financing on paper and still create credit losses.
- Construction is delayed
- Cost-to-complete is underestimated
- Contractor capacity is weak
- Draws are unsupported
- Liens accumulate
- Compliance deficiencies delay reimbursement
- Inspections fail
- Required documentation is incomplete
KIRBI Capital's construction knowledge informs its credit approach. The goal is to evaluate not only whether a project looks financeable on paper, but whether it can actually be built, documented, inspected, reimbursed, stabilized, and converted.
Underwriting standards, advance rates, coverage tests, and conditions are determined transaction by transaction. Not every loan uses the same underwriting thresholds, and no loan is approved except in accordance with applicable credit, documentation, legal, and program requirements.