New Construction Loans

Please refer to the New Construction Loans program overview for a list of requirements and fees.

Yes! We offer long-term 30 year rental loans for properties you intend to hold. We can refinance or cash-out refinance your existing loan after you’ve held it for at least 90 days. While the long-term loan cannot close until at least 90 days after your existing short-term loan has been held, we can begin the processing and underwriting of the loan prior to 90 days.

The construction budget may only include Hard and Soft Costs:

Hard Costs: Consists of all costs involved in the physical construction of the building and its infrastructure which includes all labor, materials, and any associated general contractor fees. A minimum of 10% hard cost contingency must be incorporated into the budget.

Soft Costs: Non-physical construction costs limited to 15% of the entire Construction Budget and may only include required permits, plans/architect fees, third party contractor fees, and city/county inspection fees.

For borrowers who already own the land, the loan can contain a refinance or cash-out component. If the land is owned free-and-clear (without any encumbrances), a cash-out component is not required.

Yes, up to the allowable maximum LTV/LTC.

If land is being purchased with the loan, funds (up to your maximum allowable LTV/LTC) are distributed at the closing. The construction portion of the loan, however, is not disbursed at the loan closing. Instead, the funds are provided via draws. Once a portion of the construction work has been completed, the borrower submits a draw request. We send an inspector to verify the work. Draw funds are wired to you for completed work verified by the inspector.

For loans where the land is already owned by the borrower, funds towards the refinance or cash-out (up to your maximum allowable LTV) are distributed at the closing. Construction funds are distributed via draws.

New construction loans, sometimes referred to as ground-up construction loans, are short-term financing for build-to-sell or build-to-rent properties.