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Ground up Construction Financing

Ground up Construction

  1. Loan Size: $75K – $2M Per Unit
  2. NO Prepayment Penalty
  3. 9-12 Month Term (w/ extension provisions)
  4. Rates: Starting at 10.25% Monthly Interest Only Payments
  5. Units: 1-4
  1. Points: 2-3 
  2. Doc Fee:$1,995
  3. Up to 85% Loan to Cost (LTC)
  4. Up to 70% Loan to Value (LTV)
  5. Geography: Nationwide (except LA, MN, MO, ND, NY, SD)
  6. First-Time Builders accepted

MF Overlays

  • Max loan amount $20,000,000
  • Max LTV 6 5% / L TC 8 5%
  • Minimum DSCR 1.25x using:
  • 0.250% over the provided take-out letter by an approved provider, fully amortizing over 30-Year Term
  • 30% minimum OPEX
  • Evidence of vertical permits ready for pick-up or in file prior to closing. No exceptions.
  • PACE Financing is allowed with a max LTC 80% and no tail after the payback of PACE financing. If condo, PACE requires 30% per unit paid with each sale.

General Requirements

  • All lending for investment purposes only
  • Interest calculated on drawn balance unless Gross Interest is selected
  • Construction draws based on inspection report or supporting documentation
  • 1st Lien Position always

Borrower Requirements

  • No Individuals. Borrower must be an LLC or Corporation.
  • Minimum 660 credit score. Exceptions considered with compensating factors.
  • Must have demonstrated experience of similar property types and size in the last 18 months. Demonstrated experience is evidenced of completed and sold or stabilized inventory. GC experience may not be counted unless the GC becomes a guarantor of the project.
  • Liquidity 5%. May not included earnest money deposited towards the sale of the finished project.
  • Personal Guarantee preferred; Limited Guarantee considered with 50bps fee paid at closing (may not be rolled into the loan balance).
  • Maximum Guarantor Loan Commitment with us is $50,000,000. Exceptions considered for large regionals or repeat borrowers.

Build-To-Rent SFR Overlays

  • Minimum 700 credit score. Exceptions considered with compensating factors.
  • Where the desired loan exit is a rental loan, loan amount will be constrained to the lesser of the sales comp or income approach.

To calculate the income-based approach:

  • Minimum 1.20x DSCR using:
  • Interest rate matching the provided take-out letter by a an approved provider, fully amortizing over 30-Year Term
  • 30% minimum OPEX
  • Maximum 75% LTV
  • Must be individually platted properties

Development Financing

Term (up to)

  • 24 months

Purpose

  • Acquisition, Development, and Construction loans. Experienced developers and builders benefit by consolidating and streamlining their AD&C financing for construction projects with an ‘All-In-One’ loan!

Property Type

  • Single Family
  • Condo
  • 2-4 Unit Properties
  • Townhouses
  • Multifamily

Maximum Loan Amount

  • Min Loan Amount $500,000
  • Max Loan Amount Per Unit $3,000,000
  • Max Loan Amount $20,000,000

Total Units Per Loan

  • Multiple properties per loan allowable if in the same jurisdiction

As Repaired / Improved LTV

  • Horizontal Post Lot Development LTV  55%
  • Vertical 65% LTV

Day 1 LTV

  • 50%

LTC

  • 85%

Monthly Payments

  • Interest Reserve required for the full term. Monthly Payments with an additional 0.50% Origination Fee and proof of >10% liquidity

Funds At Closing

  • For acquisition and reimbursement of Construction Costs.

MF Overlays

  • Max loan amount $20,000,000
  • Max LTV 6 5% / L TC 8 5%
  • Minimum DSCR 1.25x using:
  • 0.250% over the provided take-out letter by an approved provider, fully amortizing over 30-Year Term
  • 30% minimum OPEX
  • Evidence of vertical permits ready for pick-up or in file prior to closing. No exceptions.
  • PACE Financing allowed with a max LTC 80% and no tail after the payback of PACE financing. If condo, PACE requires 30% per unit paid with each sale.

General Requirements

  • All lending for investment purposes only
  • Interest calculated on drawn balance unless Gross Interest is selected
  • Construction draws based on inspection report or supporting documentation
  • 1st Lien Position always

Borrower Requirements

  • No Individuals. Borrower must be an LLC or Corporation.
  • Minimum 700 credit score. Exceptions considered with compensating factors.
  • Must have demonstrated experience of similar property types and size in the last 18 months. Demonstrated experience is evidenced of completed and sold or stabilized inventory. GC experience may not be counted unless the GC becomes a guarantor of the project.
  • Liquidity 5%. May not included earnest money deposited towards the sale of the finished project.
  • Personal Guarantee preferred; Limited Guarantee considered with 50bps fee paid at closing (may not be rolled into the loan balance).
  • Maximum Guarantor Loan Commitment with us is $50,000,000. Exceptions considered for large regionals or repeat borrowers.

Build-To-Rent SFR Overlays

  • Minimum 700 credit score. Exceptions considered with compensating factors.
  • Where the desired loan exit is a rental loan, loan amount will be constrained to the lesser of the sales comp or income approach.

To calculate the income-based approach:

  • Minimum 1.20x DSCR using:
  • Interest rate matching the provided take-out letter by a an approved provider, fully amortizing over 30-Year Term
  • 30% minimum OPEX
  • Maximum 75% LTV
  • Must be individually platted properties

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