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New Construction Financing


"Up To 90% Financing Of Total Construction Cost - Including Lot"

First Time Investors OK!

Investor New Construction Financing!

Up To 90% Of Lot Purchase And Construction Costs!

100% Of Construction Cost If Lot Owned Free & Clear!*

$75,000.00 –  $5,000,000.00+ Loan Amounts!

Minimum  600+ Credit Score!

New Single Close – Construction To Permanent 30 Year Loan!


New Construction Financing Program Highlights:

– New Single Close – Construction To Permanent 30 Year Loan (see paragraph 2.1 below)

Minimum 600+ Credit Required To Qualify For Funding! 

– *No Down Payment – 100% Construction Financing Possible If Lot/Land Owned Free & Clear and is Minimum 10-15% of Construction Cost!

– 90% Lot Purchase & Construction Financing!

– 3.75% Loan Origination Fee or $4,500.00 (whichever is greater)

– Minimum $15,000.00 In Liquid Checking/Savings Account Required For Funding Approval! 

– Loan Amount Up To 70% Of After Build Value.   Up To 75% In California!

– Loan Amounts From $75,000.00  –  $5,000,000.00!

– Close In 10-12 Business Days From Receipt Of All Required Documents!

– 13 Month Term, No Prepayment Penalty Interest Only Payment! 

– Foreign Nationals OK with minimum of two (2) completed flips within last 24 months!

– Spec Homes OK For Builders & Investors! 

– First Time Investors OK!


For Same Day Prequalification – No Credit Pull Required For Prequalification – Click Here


Funding Available NATIONWIDE, except:

Alaska, Hawaii, Idaho, Maine, Montana, Nevada, New York, North Dakota, Puerto Rico, South Dakota, Utah and Vermont  

All investor loan transactions must close in the name of  a business entity!   



1.  Credit Score Requirement

Minimum 600+ credit score required for funding approval.


2.  Qualifying Credit Criteria  Any member of the business entity contributing cash assets to the transaction must meet qualifying credit criteria.

No bankruptcies in past three (3) years

No foreclosures, short sales, or deed in lieu in past 2 years

Minimum of two (2) credit scores are required to reflect on credit report


– The lot/land size cannot exceed more than 2 acres and cannot be considered in a rural location.

– Construction budget allows for payment of the “builders fee” to be included in total cost of the construction budget as the cost of labor throughout the various line items of the budget.  The Builders Fee cannot be shown as an individual line item(s) on the construction budget.

– 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.


2.1  Single Close –  Construction To Permanent 30 Year Loan Criteria

– Only one (1) closing for the construction loan and the conversion to permanent 30 year loan.

–  Minimum 620+ middle credit score required.  Soft credit pull is done at time of conversion to permanent 30 year loan to verify credit score is minimum 620+.

– Must have a verifiable prior mortgage history (primary residence OR rental property)

– Cash out option available “after” construction is 100% complete.  Based on property debt service and appraisal.

– Initial appraisal will include 1007 rental schedule for projected rents.  Appraiser will re-certify appraisal at time of conversion to 30 year loan.

– 1% origination fee (or minimum $1,000.00) at time of conversion to permanent 30 year loan.  If borrower chooses not take the permanent loan after rehab is done there will be a .50% point exit fee.

– Interest Rates:  Borrower will be provided a rate table prior to closing on the construction loan which will detail the expected interest rate at time of conversion to permanent 30 year loan.


3.  100% Financing Option When Lot Owned Free and Clear:  Prior New Construction Projects Or Completed Fix and Flip Transactions Last 24 Months

Level 1:  0 flips*             12% interest rate         100% of construction cost up to 70% ARV If Lot Owned Free and Clear (note 1)

Level 2:  1-4 flips           11% interest rate         100% of construction cost up to 70% ARV If Lot Owned Free and Clear (note 1)

Level 3:  5+ flips            10% interest rate         100% of construction cost up to 70% ARV If Lot Owned Free and Clear (note 1)

*0 flips with less than 680+ credit = 85% LTC with max of 65% of ARV

–  IMPORTANT:   Completed flips are defined as residential investment properties that were acquired within the last 24 months AND renovated and sold within 12 months of acquisition. 


  1.  For 100% construction financing, the acquisition cost of the  lot/land must be a minimum of 10%-15% of the total construction cost.
  2. Lot must be shovel ready (water, utilities, sewer installed)


4.  90% Financing Option Including Lot Purchase:  Prior New Construction Projects Or Completed Fix and Flip Transactions Last 24 Months

Tier 1:  0 flips*            12% interest rate         90% of lot purchase and construction cost up to 70% ARV 

Tier 2:  1-4 flips           11% interest rate         90% of lot purchase and construction cost up to 70% ARV 

Tier 3:  5+ flips            10% interest rate        90% of lot purchase and construction cost up to 70% ARV 

*0 flips with less than 680+ credit = 85% LTC with max of 65% of ARV

–  IMPORTANT:  Completed flips are defined as residential investment properties “exited or sold in the last 24 months” and owned for no more than 12 months during the last 24 months OR a property acquired, rehabbed, and converted to permanent financing and owned for no more than 12 months during the last 24 months.

LOT MUST BE SHOVEL READY (water, utilities, sewer installed)


4.1  Construction Budget & Funds Disbursement Policy

–  We do not advance construction loan funds.  Construction funds are disbursed (at your discretion) as work is documented as completed with your project

–  Request for disbursement of construction funds are initiated via online portal.  Funds are normally disbursed within 3 business days after completion of inspection/validation of completed work.

–  There is a $200.00 inspection/draw fee for each disbursement of construction budget 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.

– Tier 1 & 2 Borrowers OR Loan Amounts Over $500K:   If Construction Budget Is Greater Than 50% Of Purchase Price – If construction budget is greater than 50% of purchase, borrower must show 20% of construction budget in reserves and 9 months of interest only payments in reserves.


5.  Reduced Interest Carry Cost During Construction Period

Tier 3 borrowers qualify to pay a reduced interest rate on the un-used portion of the new construction budget during the term of the construction loan.


6.  Verification Of Liquid Cash Assets Is Required*

To qualify for funding approval, you must provide most recent 2 months bank statements that reflect an ending balance that covers the following specific transaction related items:

– Down Payment

– Construction Budget Reserves

– Monthly Interest Payment Reserves

– Lender Fees


– Deposits of $25,000.00+  must document the source of deposit

– Stocks, bonds, mutual funds, retirements accounts are reduced to 50% of value for calculating verification of assets.

– Borrower must show a minimum of $15,000.00 in cash liquid assets to qualify for funding approval.  Regardless of total assets, $15,000.00 must be in liquid cash in on demand account (checking, savings, money market).


7.  Loan Origination Fees

3.75% of total loan amount OR $4,500.00 (whichever is greater).

3.25% for loan amounts over $2,000,000.00.


8.  Other Lenders Fees

Underwriting Fee:  $995.00

Processing Fee:  $495.00


9.  Qualifying Types Of Properties

Single Family residences and 2-4 units.  Non owner-occupied only.  No primary residence or vacation homes.  No condo’s.


10.  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.

 11.  Minimum And Maximum Loan Amounts

Minimum loan amount is $75,000.00 and maximum loan amount is $5,000,000.00.

12.  Full Property Appraisal Required

A new traditional full property appraisal is ALWAYS required to underwrite and close a investor loan for this product.  We cannot use an existing appraisal from any other source.  We will order an expedited appraisal at time of submission of loan file for underwriting approval.  Cost of appraisals range from $375.00 – $575.00.  Loan amounts above $1,000,000.00 require two (2) appraisals.

13.  Verification Of 6 Months Reserves Required

All loan transactions require that you verify six (6) months of interest payments (Reserves) via your bank statements.   If borrower credit score is below 680, borrower will need to show 9 months of reserve monthly interest payments.

Terms of Loan Funding

14.  Property Type

Single family residences and 2-4 residential units.  No condo’s.


15.  Interest Rates

Interest rates range on average from 9.99% to 12% depending on credit score, number of prior transactions and documented liquid cash reserves.


16.  Subordinate Financing

Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.


16.1  General Contractor Approval Requirements

The General Contractor (GC) must be approved for all new construction projects by providing the following specific documents for underwriting review:

__ GC Biography (template form provided),

__ Drivers License

__ Contractor/Builders License

__ Proof Of Liability Insurance

__ Workers Compensation

__ Two most recent bank account statements OR two most recent tax returns

__ Prior 24 month portfolio showing at least two (2) properties of equivalent budget size


17.  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 bank statements (must include all pages)

__ Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation

__ Operating Agreement or Corporate Charter/Bylaws

__ Certificate Of Good Standing (Issued By Secretary Of State within 30 days)

__ Construction Budget (Must Use Our Template Provided)

__ Copy of building plans and specifications

__ General Contractor Biography Form and List Of References (We Provide PDF form)

__ General Contractor License and Asset Documents

__ Survey of lot/land (when required by underwriting)

Note:   Terms are subject to change. Final terms vary depending on the property and borrowing entity

Get Started Now – Free Pre-qualification – 600+ Credit OK!

Low Rates – Flexible Terms – Close in 10-12 business days!