New Construction loan
In a competitive market with limited profitable opportunities, new construction is a favored option for investors looking to make a lasting impact on homes, neighborhoods, and communities. Often seen as the pinnacle of real estate investing, new construction offers distinctive opportunities for long-term growth.
Program Details
Interest Rate:
Rates Starting at 10.49%
How Interest is Charged:
Interest charged as drawn
Max Loan to ARV:
Up to 90% LTC and 70% ARLTV
Property Type:
Single family, 2-4 unit residential, Multifamily, and Mixed-use
Project Description:
Land Development or Knockdown Deconstruction
Experience Requirements:
Strong credit, liquidity, and experience
Build Type:
Stick or Modular Build
Loan Term:
12-18 Month Term Available
Max Loan Amount:
Up to 90% of purchase and 100% renovation
Project Description:
Land Development or Knockdown Deconstruction
Frequently Asked Questions
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New construction loans offer financing for the development of new properties, covering everything from land acquisition to construction expenses. These loans are typically short-term and are replaced by a traditional mortgage once the construction is finished.
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Ideal candidates for new construction loans are individuals or developers planning to build a property from the ground up, with detailed construction plans and a qualified builder in place.
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These loans typically require interest-only payments during the construction phase, with funds disbursed in stages as construction milestones are achieved. Once the project is complete, the loan converts into a standard mortgage.
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Risks associated with new construction loans include potential construction delays, cost overruns, and the possibility that the completed property's value may fall short of initial projections, which could impact the final mortgage terms.
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Lenders assess the borrower's creditworthiness, the feasibility and details of the construction project, the reputation and reliability of the builder, and the projected value of the completed property.
Explore our other loan programs
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Long Term Loan
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Commercial Bridge
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