Investor New Construction Financing!
75% Financing Of Lot Purchase Cost
100% Financing Of Construction Cost!
$100,000.00 – $2,500,000.00 Loan Amounts!
New Construction Financing Program Highlights:
– Minimum 660+ Credit Required To Qualify For Funding!
– 75% Financing For Lot Purchase!
– 100% Financing Of Construction Cost!
– Experienced investors with 5+ new construction builds in last 36 months required!
– Loan Amount Up To 65-70% Of After Build Value.
– Loan Amounts From $100,000.00 – $2,500,000.00!
– Close In 12-15 Business Days From Receipt Of All Required Documents!
– 13 Month, 19 Month Or 24 Month Term!
– No Prepayment Penalty!
– Interest Only Payment!
– Spec Homes OK For Builders & Investors!
NEW CONSTRUCTION FINANCING PROGRAM
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!
NEW CONSTRUCTION LOAN FUNDING GUIDELINES
1. Prior Experience Requirement
a. Must document a minimum of 5+ “new build, ground up” new construction projects with last 36 months. Rehab fix and flips do not count towards new construction experience.
b. Only true new construction projects counts towards qualifying experience (i.e. rehabs and rentals are excluded)
c. Experience as General Contractor with 5+ new construction builds will be reviewed on case by case basis.
2. Credit Score Requirement
Minimum 660+ credit score required for funding approval.
3. 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.
– 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 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.
5. Loan Origination Fees
2.99% of total loan amount OR $3,995.00 (whichever is greater).
6. Other Lenders Fees
Processing Fee: $650.00
Admin Fee: $995.00
General Contractor Review and Feasibility Review: $500.00
7. Qualifying Types Of Properties
Single Family residences and 2-4 units, townhouses and 5-10 unit multifamily on exception basis only. Non owner-occupied only. No primary residence or vacation homes. No condo’s.
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 $100,000.00 and maximum loan amount is $2,500,000.00.
10. 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.
11. Verification Of 3 Months Reserves Required
All loan transactions require that you verify three (3) months of interest payments (Reserves) via your bank statements.
Terms of Loan Funding
12. Interest Rates
Interest rates range on average from 9% to 10% depending on credit score, number of prior transactions and documented liquid cash reserves.
13. Subordinate Financing
Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.
14. 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
15. 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