Construction Loans
Ground-up construction financing for builders and investors
- RATES STARTING AT
9.99%
*
Our Construction Loans provide builders and investors the financing they need for ground-up construction and land acquisition.
Key Facts about our Construction Loans
- Ideal for build-ready infill, tear down, and spec homes in urban locales
- Not for tract home projects or new subdivisions (10+ homes)
- Mid-Construction financing options available
- Loans available for single family and multi-family properties
- 12 or 24 month loan term depending on the project plan
- Experienced developers with 3+ similar past projects eligible for higher leverage
- Foreign Nationals eligible
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Ground Up Program
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Experienced Developer Program
(3+ Similar Past Projects) |
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Loan Amount
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■ Min: $50,000
■ Max: $5,000,000 |
■ Min: $50,000
■ Max: $5,000,000 |
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Property Count
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■ Min: 1
■ Max: 2 |
■ Min: 1
■ Max: 10 |
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Permitted Property Types
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▪ Eligible:
− Non-owner Occupied 1-4 unit residential − Townhomes − Condos ▪ Ineligible: − Mixed use properties − 5+ unit multifamily properties − Condotels − Co-ops / TICs − Commercial Property − Log Homes − Properties Subject to Oil and/or Gas Leases − Operating Farms, Ranches, or Orchards − Vacation or Seasonal Rentals − Rural properties |
▪ Eligible:
− Non-owner Occupied 1-4 unit residential − Townhomes − Condos ▪ Ineligible: − Mixed use properties − 5+ unit multifamily properties − Condotels − Co-ops / TICs − Commercial Property − Log Homes − Properties Subject to Oil and/or Gas Leases − Operating Farms, Ranches, or Orchards − Vacation or Seasonal Rentals − Rural properties |
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Maximum Loan to Cost
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■ Up to 75% of the lower of land value or purchase price/60% if unpermitted, plus 100% of construction
■ Max 85% of total project costs ■ LTC Catch Up Draw to raise initial advance to 75% at approval of required plans/permits post-closing |
■ Up to 75% of the lower of land value or purchase price/60% if unpermitted, plus 100% of construction
■ Max 90% of total project costs ■ LTC Catch Up Draw to raise initial advance to 75% at approval of required plans/permits post-closing |
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Maximum Loan to ARV
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■ Up to 70%
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■ Up to 70%
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Reserves/Escrows
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■ Interest Reserve:
Minimum 1 month |
■ Interest Reserve:
Minimum 1 month. Minimum 6 months full boat IR funded with initial loan amount for 90% LTC loans |
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Term Length
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■ 12 months, Up to 18 at Lender Discretion
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■ 12 months, Up to 24 at Lender Discretion
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Recourse
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■ Full Recourse
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■ Full Recourse
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Experience
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■ Previous real estate experience required: 1-2 Ground ups
■ GCs if experience if permits tie to Ground ups ■ Guarantors with no experience permitted on a case by case basis |
■ Previous real estate experience required: 3+ similar Ground-up builds + heavy rehabs with expansion. Professional deveopment / builder.
■ Guarantors with no experience permitted with experienced guarantor that meets the above experience criteria |
| Ground Up Program | Experienced Developer Program (3+ Similar Past Projects) | |
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Maximum Loan-To-Cost | Up to 75% of the lower of land value or purchase price/60% if unpermitted, plus 100% of construction Max 85% of total project costs LTC Catch Up Draw to raise initial advance to 75% at approval of required plans/permits post-closing | Up to 75% of the lower of land value or purchase price/60% if unpermitted, plus 100% of construction Max 90% of total project costs LTC Catch Up Draw to raise initial advance to 75% at approval of required plans/permits post-closing |
Maximum Loan-To-ARV | Up to 70% | Up to 70% |
Recourse | Full Recourse | Full Recourse |
Reserves/Escrows | Interest Reserve: Minimum 1 month | Interest Reserve: Minimum 1 month |
Experience | Previous real estate experience required: 1-2 ground ups GCs if experience if permits tie to ground ups Guarantors with no experience permitted on a case by case basis | Previous real estate experience required: 3+ similar ground-up builds + heavy rehabs with expansion. Professional development / builder. Guarantors with no experience permitted with experienced guarantor that meets the above experience criteria |
Loan Amount | Min: $50,000 Max: $3,000,000 | Min: $50,000 Max: $3,000,000 |
Term Length | 12 months, Up to 18 at Lender discretion | 12 months, Up to 24 at Lender discretion |
Property Count | Min: 1 Max: 2 | Min: 1 Max: 10 |
Permitted Property Types | Eligible: Non-owner occupied 1-4 unit residential Townhomes Condos Ineligible: Mixed use properties 5+ unit multifamily properties Condotels Co-ops/TICs Commercial property Log Homes Properties subject to oil and/or gas leases Operating farms, ranches, or orchards Vacation or seasonal rentals Rural properties | Eligible: Non-owner occupied 1-4 unit residential Townhomes Condos Ineligible: Mixed use properties 5+ unit multifamily properties Condotels Co-ops/TICs Commercial property Log Homes Properties subject to oil and/or gas leases Operating farms, ranches, or orchards Vacation or seasonal rentals Rural properties |
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Construction Loan
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LOAN PURPOSE
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- Ground-up construction loans for developers and investors building 1-5 properties at a time
- Lot financing can be included, if lots are in build-ready condition |
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LOAN AMOUNT
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$50K - $5MM
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TERM
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12 months (standard), with optional extensions
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BORROWER TYPE
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Entity required
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MINIMUM EXPERIENCE
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Minimum (2) builds and (1) rehab experience required
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MAXIMUM LOAN-TO-VALUE (LTV)
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Up to 70% LTV
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MAXIMUM LOAN-TO-COST (LTC)
COST IS PURCHASE PRICE AMOUNT |
Permitted: up to 75% LTC / Unpermitted: up to 60% LTC
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WHEN DO WE USE LTV VS LTC?
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Generally, we use the lesser of LTV or LTC calculation
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REHAB/CONSTRUCTION FINANCING
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Funding up to 100% construction budget up to % Approved LTV of Total Cost
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FOREIGN NATIONALS
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Not allowed from ineligible country list
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PROPERTY TYPES
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Non-Owner Occupied:
- Single Family Residences (SFR) - 2-4 unit properties - Townhomes - Condos |
Over $8 Billion in loans for Real Estate Investors
- Loans designed for developers and investors alike
- Option to include land acquisition financing
- Multiple draws available at borrower’s discretion
We have the product to meet your needs.
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