We typically require a minimum middle credit score of 660. However, we have a few Private Investors who may consider a credit score of 600 or higher.
Real estate investors often favor hard money construction loans due to the higher underwriting restrictions and lengthy approval process associated with conventional options like FHA, USDA, SBA, Fannie Mae, and Freddie Mac loans. Private lenders offer quicker approval, enabling builders and developers to commence construction promptly and offset additional financing costs by saving on project time.
The required down payment varies based on the loan type, property, builder’s experience, credit score, and financial strength. Typically, borrowers may need to inject 15% to 30% down payment or equity into the project.
Yes, we do. Additionally, we provide hard money loans nationwide.
Maximum LTV and LTC depend on the loan type, property, builder’s experience, credit score, and financial strength. We can offer up to 70% LTV and 90% LTC. For fix and flip loans to experienced investors/builders, we offer 100% LTC.
Call 844-690-6000 to schedule a meeting with one of our experienced Loan Officers to complete an application and discuss possible loan options. Be prepared to provide additional documents for our initial review and issuance of the Letter of Intent (LOI).
CommercialConstructionLoans.net serves as your comprehensive construction solution center. Our experienced team guides you through each step, securing approval with the right loan program and investors.
We operate as both. Additionally, we have over 200 investors/lenders to match the loan program if we can't conduct in-house underwriting.
We offer construction loans up to $100 million for large projects. Fix and flip loans start at $150,000, and new construction loans start at $500,000.
Typically, we do not impose prepayment penalties on new construction or fix and flip loans.
We offer loans nationwide (except in South Dakota and North Dakota) and Puerto Rico.
Our hard money loan products typically close within 3-6 weeks. However, conventional, bank, and agency loans may take 3-12 months.
If you expect to receive those permits within the next 30 days, you can apply for the construction loan.
Yes, we do. However, the loan-to-value ratio will be low.
A draw is an advance against the approved line of credit secured by the property or land.
Yes, you can. We may even provide additional working capital at closing if you have sufficient equity in the project to cover the closing costs and down payment.
Yes, you can if the project has enough equity.
We do not charge upfront points or origination fees until funding the loan. However, we have a minimum processing fee covering part of our due diligence and processing costs, typically ranging from $750 to $3000 per loan, significantly lower than industry standards of $10,000 to $50,000 in upfront fees.
Interest rates for construction loans are typically higher due to their higher risk profile. Rates can be fixed or variable, and during construction, you may only need to pay interest. The interest rate depends on factors such as experience, equity, credit, and risk analysis.
Construction loans usually require a clear construction plan, including designs and cost estimates, a good credit history, and a down payment. Lenders also consider the borrower's ability to repay the loan based on their proforma, equity, and assets.
Insurance requirements vary but typically include general liability, workers' compensation, and builder's risk insurance.
We offer a comprehensive range of commercial and residential investment loans. However, we do not provide loans for owner-occupied home construction projects.