Ground-Up Construction Loans

Below are some of the key components of our ground-up construction loan program.

• Loan

  • Amount: $50K to $5MM

  • Loan-to-Total Cost: Up to 80%

  • Loan-to-After Repair Value: Up to 70%

  • Type: Purchase or Refinance

  • Rate Type: Fixed

  • Payment Type: Interest Only Balloon

  • Payment Frequency: Monthly

  • Soft Costs: Limited to 15%

  • Initial Advance: Up to 75% of the lessor of purchase price or as-is value if the land is fully entitled/permitted for the proposed construction project; otherwise, up to 60%.

  • Insurance Requirements: Builder's risk, construction general liability, hazard, workers’ compensation, and flood

• Property

  • Type: SFR, PUD, 2-4 Units

  • Area: Urban, Suburban

  • Use: Residential, Non-Owner Occupied Only

  • Eligible States: AL, AR, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, ME, MD, MI, MS, MO, MT, NH, NM, OH, OK, PA, SC, TX, VA, WA, WI, WY

• Borrower

  • Guarantor Credit Score: At least 650

  • Experience: Three completed ground-up construction projects as an owner

  • Guarantee and Credit/Background Check: Required for all 20%+ owners of the borrowing entity and as many owners as it takes to total at least 51% ownership

  • Guarantor Background: No derogatory credit events (e.g. bankruptcy, foreclosure, short-sale, deed-in-lieu, etc.) within the past 36 months; no felony convictions, misdemeanor convictions involving fraud, embezzlement or other similar crimes; no late mortgage payment on credit report within the past 24 months; no indications of late payments on payoff statements (for refinances)

• Fees

  • Lender Fees: 2% Origination Fee, $999 Service Fee

  • Third Party Fees: TBD; typical costs include title, insurance, recording, appraisal, budget review and legal. Wholesaler fees are capped at 20%, if applicable.