We offer loans.
A construction loan is typically a short-term loan used to pay for the cost of building a home.
Construction Loan: One Time Close and Investment Property Only
Loan Parameters:
- 20% down payment, of the cost of the property, plus construction cost.
- Interest only for 1 year while you build.
- 5-year ARM with a 25-year amortization.
- 720 minimum credit scores
- Preapproval process about 1 week
- Close in about 45days
- Inspection fees $150 per inspections (based on draws)
- No max amount for renovations
- Minimum loan amount $50k for flips and $100k for New Construction.
- Commercial appraisal about $1200 for fourplex. Less on lesser units
- Builder approval thru third party vendor is required.
- No prepayment penalties
- No escrows required
- No max debt to income ratios
- Gift Funds from relatives are not allowed on this program
- Citizen, permanent resident and some Work Visas allowed
Construction Loan for Investors
Loan Parameters:
Purpose:
Ground-up construction loans for build-ready lots. Ideal for investment property infill, tear down, and spec homes.
Minimum Experience (36 mo. Lookback period):
Minimum (1) New Construction experience for max leverage or (1) Fix & Flip experience for reduced leverage
Individual Loan Size:
Single Unit: $100K – $1MM Multi Unit (2+): $100K – $1.5MM
Exposure Limit Amount:
$500K – $10MM
Construction Holdback:
Up to 100% of construction budget
Borrower Type
Individuals and Entities (LLC, Corporation). Foreign Nationals eligible.
Eligible Properties
Non-owner occupied: Single Family Residence, 2-4 units, Condos1, Multi-family, Mixed Use Property
Eligible Costs Financed
We finance Hard Costs and all Soft Costs
Loan Term
12 months standard, interest-only with fixed rate. 18-month option available.
Minimum Interest
180 days of interest on the maximum loan amount
Interest Accrual
Interest on full balance or the actual drawn balance
Ineligible Project Scope
Limited to build-ready infill, tear down, mid-construction3 & spec homes. Not for tract home projects or new subdivisions (10+ homes)
Valuation Requirements
Full 1004 Appraisal with “as-is” and “ARV” values. Exterior appraisal with “as-is” and “ARV” values allowed (case-by-case). No rural properties.
(ARV= After Repair Value)
Liquidity Requirement
Down Payment + Closing Costs + 10% of the Holdback + Any Equity Shortage + Required Reserves
Interest Reserves
Optional 6 months or 12 months for lower rate
Credit Scores and Loan to values:
Minimum Credit Score: 620 FICO
Max Loan-to-Value (ARV LTV)
- Single Unit max 70%
- Multi Unit (2+) max 65%
Max Purchase Loan (LTC)
- Single Unit max 85%
- Multi Unit (2+) max 80%