Investor New Construction Financing!
Up To 75% Financing Of Lot Purchase Cost
100% Financing Of Construction Cost!
$250,000.00 – $3,000,000.00 Loan Amounts!
New Construction Financing Program Highlights:
– Minimum 660+ Credit Required To Qualify For Funding!
– Up To 75% Financing For Lot Purchase. Lots purchased as cash within last 24 months are considered as a delayed purchase!
– 100% Financing Of Construction Cost!
– No Monthly Interest Carry Cost On Used Construction Budget!
– Must Have Minimum Of One (1) ground up new construction build within last 36 months!
– Loan Amount Up To 75% Of After Construction Value.
– Loan Amounts From $250,000.00 – $3,000,000.00!
– Close In about 15 Business Days From Ordering Of Property Appraisal!
– 18 Month Term!
– No Prepayment Penalty!
– Interest Only Payment!
NEW CONSTRUCTION FINANCING PROGRAM
Funding Available NATIONWIDE, except:
Hawaii, Nevada, Oregon, Minnesota, North Dakota, South Dakota and Vermont
All investor loan transactions must close in the name of a business entity!
NEW CONSTRUCTION LOAN FUNDING GUIDELINES
1. Prior Experience Requirement
a. Must document a minimum of one (1) ground up new construction project within last 36 months.
2. Credit Score Requirement
Minimum 660+ credit score required for funding approval.
3. Qualifying Credit Criteria
No bankruptcies in past three (3) years
No foreclosures, short sales, or deed in lieu in past 3 years
No prior criminal convictions at any time in the past
– The lot/land size cannot exceed more than 10 acres and cannot be considered in a rural location.
– Contingency fee is allowed at a reasonable amount compared to total cost of project.
– Cost for architectural plans and permits “can be included” in the construction budget.
4. Construction Budget & Funds Disbursement Policy
– We do not advance construction loan funds. Construction funds are disbursed (at your discretion) as work is completed on your project
– Construction Draw Funds are normally disbursed within 2-3 business days after completion of inspection/validation of completed work.
– There is a $200.00 inspection/draw fee for each disbursement of construction funds. The fee is deducted from your construction budget at the time of each disbursement.
– There is no minimum or maximum number of draws against the construction budget.
5. Loan Origination Fees
2.99% of total loan amount
6. Other Lenders Fees
Legal Fee: $995.00
Processing Fee: $895.00
7. Qualifying Types Of Properties
Single Family residences
Townhomes and condo’s
Multifamily 5+ Units (Prior ground up construction experience required)
Non owner-occupied only
8. All Transactions Must Close In A Business Entity Name
Funding can only be approved in a business entity name. There is no seasoning requirement on the age of the business entity. Entities include: LLC, LLP, S-Corp, C-Corp.
9. Minimum And Maximum Loan Amounts
Minimum loan amount is $250,000.00 and maximum loan amount is $3,000,000.00.
10. Full Property Appraisal Required
A new traditional full property appraisal is ALWAYS required for new construction projects. We cannot use an existing appraisal from any other source.
10.1 Construction Feasibility Review Required
11. Verification Of Reserves Required
Must show liquid reserves equal to a minimum of 10% of the construction budget.
Terms of Loan Funding
12. Interest Rates & Monthly Interest Payment
– Interest rates range on average from 8% to 9% depending on experience and credit score.
– If initial loan amount (not including construction budget loan) is less than $50,000.00 then interest will be paid on the full loan amount starting from the day of closing.
13. Subordinate Financing
Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.
14. Required Documents For Funding Approval
Business Entity Borrower Only (Must close in the name of a business entity)
__ Copy of valid identification (all members of business entity)
__ Last 2 month’s business or personal bank statements (must include all pages)
__ Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation
__ Operating Agreement or Corporate Charter/Bylaws
__ Construction Budget (Must Use Our Template Provided)
__ Copy of building plans and specifications
__ General Liability Insurance Policy For Minimum $1,000,000.00
__ Survey of lot/land
Note: Terms are subject to change. Final terms vary depending on the property and borrowing entity