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Construction Loans

Ground-up construction financing for builders and investors

10.99%

*

Our Construction Loans provide builders and investors the financing they need for ground-up construction and land acquisition.

Key Facts about our Construction Loans

Ground Up Program
Experienced Developer Program
(3+ Similar Past Projects)
Loan Amount
■ Min: $50,000
■ Max: $5,000,000
■ Min: $50,000
■ Max: $5,000,000
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
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%
Reserves/Escrows
■ 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
Term Length
■ 12 months, Up to 18 at Lender Discretion
■ 12 months, Up to 24 at Lender Discretion
Recourse
■ Full Recourse
■ Full Recourse
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 deveopment / builder.
■ Guarantors with no experience permitted with experienced guarantor that meets the above experience criteria
Ground Up ProgramExperienced Developer Program (3+ Similar Past Projects)

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 75%

Up to 75%

Recourse

Full Recourse

Full Recourse

Reserves/Escrows

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

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 deveopment / builder.

Guarantors with no experience permitted with experienced guarantor that meets the above experience criteria

Loan Amount

Min: $50,000

Max: $5,000,000

Min: $50,000

Max: $5,000,000

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

Construction Loan
LOAN PURPOSE
- 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
LOAN AMOUNT
$50K - $5MM
TERM
12 months (standard), with optional extensions
BORROWER TYPE
Entity required
MINIMUM EXPERIENCE
Minimum (2) builds and (1) rehab experience required
MAXIMUM LOAN-TO-VALUE (LTV)
Up to 70% LTV
MAXIMUM LOAN-TO-COST (LTC)
COST IS PURCHASE PRICE AMOUNT
Permitted: up to 75% LTC / Unpermitted: up to 60% LTC
WHEN DO WE USE LTV VS LTC?
Generally, we use the lesser of LTV or LTC calculation
REHAB/CONSTRUCTION FINANCING
Funding up to 100% construction budget up to % Approved LTV of Total Cost
FOREIGN NATIONALS
Not allowed from ineligible country list
PROPERTY TYPES
Non-Owner Occupied:
- Single Family Residences (SFR)
- 2-4 unit properties
- Townhomes
- Condos
Over $8 Billion in loans for Real Estate Investors
What Makes this Product Stand Out?
  • 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.

 Important Note: If you are a broker, please call your FACo Account Executive to initiate access to your new and enhanced portal. If you don’t know who your Account Executive is, please call (866) 464-3226 .

Get Started

Complete the form below and a member of our experienced sales team will reach out to you directly to discuss your goals and answer any questions you may have.









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