New Construction

New construction loans are an excellent financing option for anyone looking to build or renovate their dream property. These short-term loans offer quick access to funds which shortens the time frame and can be customized to your unique needs.  

Your initial draw is typically calculated based on the current value of the property while the renovation budget is normally advanced in construction draws.

Below is an example of terms and costs:

Standard New Construction Loan Terms 

  • Max Loan Amount: $10,000,000 

  • Max LTC/ARV (Loan to Cost / Loan to After Completed Value): 

  • Experienced Investors: The Lesser of 80% LTC or 70% ARV. 

  • Inexperienced Investors: The Lesser of 65% LTC or 55% ARV. 

  • Rate: Starting at 10.5% 

  • Term: 12-24 months 

  • Payments: Monthly Interest Payments with 

  • Balloon at Maturity 

  • Prepayment penalty: None 

Costs: 

  • Origination Fee: 1-2% 

  • Underwriting Fee: $1,500 

  • Feasibility and Contractors Report: $1,200 

  • Draw Fee (for future draws on the loan): $400 

  • Legal: $750 – $1,500 

  • Appraisal Fee: $500-$950 

  • Title Insurance and recording fees: 1% (Approximate) 

Property Types: 

  • Condominiums. 

  • Single-family residences. 

  • Two to four units. 

  • Multifamily homes. 

  • Townhouses. 

  • Other property types on a case-by-case basis.  

Requirements: 

  • Credit Application 

  • Last 2 bank statements (US bank account) 

  • Copy of ID and Borrowing Entity docs 

  • Purchase Contract (If Purchase) 

  • Project budget/ Scope of work 

  • Approved plans (If applicable) 

  • Track Record Sheet 

  • Contractors’ information 

  • Property Insurance  

Closing Time: 

  • The Usual Time to Close is  20-30 days. 

Because we are a private lender, we can normally secure a loan in a quicker period of time.

As with most loans, once the title work and appraisals are finished, your loan should be ready to close. 

Ready to pre-qualify?

Click here and one of our loan facilitators will get back to you within 48 hours.