NEW CONSTRUCTION LENDING

Flexible FInancing For Construction Projects

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PRODUCT OVERVIEW

  • Loan amounts up to $10 million for spot projects

  • Loan amounts up to $50 million for multi-unit developments

  • Available for residential purposes, may contain commercial and mixed-use 20% or less, restrictions apply

  • Terms up to 24 months

  • Acceptable loan purposes: purchase, refi

  • Construction teams in place to manage and complete property construction or rehabilitation

  • Liquidity equal to 7% of contingent liabilities

  • Lender’s Wholesale to always remain in first-lien position; 2nd lien allowed if seller carry or equity partner with Intercreditor or Subordination agreement

  • No Rural; must be within 25 miles of MSA with a population of greater than 50,000

PROPERTY TYPES

  • Single Family

  • Condo

  • Townhouses
  • 1-4 units

  • Multi-Family

Budget

  • Budget Holdback >$1M, 3rd party review required

  • Interest Reserves – 100% of Initial Advance PLUS 50% of Holdback

  • Construction draws based on inspection report and/or reciepts (We allow receipts for soft costs)

  • Interest is calculated on drawn balance

LTV(FV)

  • 65% – 70% depending on LTC and property type

LTC

  • 82.5% or less - SFR, 1-4 Units ONLY - 70% LTV(FV)

  • 82.6% to 85% - SFR, 1-4 Units ONLY - 65% LTV(FV)

  • 85% or less - 5+ Units - 65%

CONTINGENCY REQUIREMENTS

  • 30+ Doors: 10%

LICENSED LENDING STATES

AL, AZ, CA, CO, FL, GA, ID, OR, NC, SC, NV, TN, TX, UT, WA

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EXCLUDED DWELLING/LOAN TYPES

  • No Lot Loans
  • No Mobile or Log Homes
  • No Co-Ops
  • No 60+ Delinquent
  • No Land Loans
  • No Leasehold