New Construction Loan
New construction loans are short-term loans used to finance the building or renovation of a home or real estate project. With this program the initial draw will be calculated based on the As-is Value of the property, and the build/renovation budget will be advanced in draws as each phase of the construction process is finished and properly inspected.
Standard Loan Terms
‣ Max Loan Amount: $5,000,000
‣ Max LTC/ARV (Loan to Cost / After Repaired Value):
‣ Experienced Investors: The Lesser of 85% LTC or 70% ARV.
‣ Inexperienced Investors: The Lesser of 65% LTC or 55% ARV.
‣ Rates: Starting at 10%
‣ Term of loan: 12 months (with option to extend up to 24 months)
‣ Payment: Monthly Interest Payments with Balloon at Maturity
‣ Prepayment penalty: None
‣ Minimum credit score required: 600
‣ Closing time: 3 to 4 weeks on average
Standard Requirements
‣ Credit Application filled and signed
‣ Last 2 bank statements (Of an US bank account)
‣ Copy of ID
‣ Copy of Borrowing Entity documents
‣ Purchase Contract (If the loan entails purchase)
‣ Project budget / Scope of work
‣ Approved plans (If applicable)
‣ Track Record Sheet
‣ Contractors information
‣ Property Insurance