New Construction Loan
New construction loans are short-term loans used to finance the building or renovation of a property or real estate project.
With this program, we can advance at closing up to 75% of site value or total invested, including soft costs, and can approve the construction/renovation budget up to 90% of LTC, and can request a draw right after closing, as each phase of the construction process is finished, with no inspection or minimum investment required. Can include and close the land purchase as well, before permits are approved.
Standard Loan Terms
‣ Max Loan Amount: $5,000,000
‣ Max LTC/ARV (Loan to Cost / After Repaired Value): The Lesser of 90% LTC or 70% ARV
‣ Rates: Starting at 9%
‣ Land purchase or refi up to 75% LTC
‣ Can include soft costs
‣ Can close before permits are approved or even requested
‣ Draws requests done by phone app, paid an average of 48 hours
‣ 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
‣ Option with no liquidity requirement or minimum equity coverage.
Standard Requirements
‣ Credit Application filled and signed to run a credit and background check
‣ Last 3 bank statements (Of a 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
‣ Contractor's information
‣ Property Insurance.