New construction are short-term loans used to finance the building or renovation of a home or real estate project. The initial draw will be calculated based on the As-is Value of the Property and the renovation budget will be advanced in construction draws.
Standard Loan Terms:
- Max Loan Amount: $5,000,000
- Max LTC/ARV (Loan to Cost / Loan to After Completed Value):
- Experienced Investors: The Lesser of 82.5% LTC or 70% ARV.
- Inexperienced Investors: The Lesser of 65% LTC of 55% ARV.
- Rate: Starting at 10.5%
- Term: 12-24 months
- Payments: Interest Only with balloon at maturity.
- Prepayment penalty: None
- Interest type: Non-Dutch
Property Types
- Condominiums
- Single-family residences
- Two to four units
- Multi Family homes
- Townhouses
- Other property types case by case