Ground Up Construction Loans
A construction loan is a short term loan used to finance the construction of a real estate project. Upon closing, a portion of the money is used purchase the property and the remaining balance is held in escrow and distributed as the project is completed
There are two payment types, dutch, where the borrower pays interest on the entire loan balance, and non-dutch, where the borrower only pays on the amount disbursed. We use the non-dutch payment structure so you only pay interest on disbursed funds.
Our leverage ratios vary depending on factors such as borrower experience, credit score and the project itself. Experienced borrower with good credit can get up to 85% LTC for their construction loan.
Hard costs are expenses directly related to the construction of a building. Soft costs are expenses indirectly related to the construction of the building, such as architectural plans, engineering, and permit fees.
No, our construction loan programs are intended to finance the construction of improvements to the property.