Ground Up Construction Financing:
80% Loan to Cost
Ground Up
Construction Financing
Up to 70% of the After Completed Value.
Residential Ground-Up Construction Financing:
Updated as of 5/15/2023
80% Loan to Cost up to 70% of the After Completed Value
Collateral Type: Residential 1 to 4 Units only.
Closing Timeframes: Close in 7-10 days or less.
Term: 1 Year Term up to 18 Months with 2 Extension Options
Rates and Origination Fees: are determined by your Experience, Credit, Capital Reserves, and the project's location. Please see the experience matrix below.
Loan Amount: from $150,000 to $3,000,000 per individual housing unit.
Experience: Projected Loan to Cost: Points: Rate:
| 3 Deals Must have a GC License | 65% Loan to Cost | 3.5% | 12.50% |
| 4 Deals Must have a GC License | 75% Loan to Cost | 3.0% | 12.00% |
| 5 Deals No GC License Required | 80% Loan to Cost | 2.5% | 11.50% |
Experience in Large-scale Construction: This program necessitates a background in undertaking construction projects from scratch of comparable size, or an extensive overhaul of the property in question, involving a considerable increase in its total square footage.
Loan to Cost (LTC): The computation for the LTC in this scheme includes three main elements - the expense of acquiring land, soft costs of construction, and hard costs of construction.
Location Preferences: Projects in urban or suburban areas are more likely to be favored. Proposals in rural locations may be accepted but will be subjected to lower loan-to-cost and after-repair-value parameters.
Procurement of Land: The scheme allows the borrower to purchase land for their intended construction project.
Post-construction Value (ARV): The scheme is equipped to provide loans up to 70% of the property's value once construction is completed.
Required Profit Margin: The scheme stipulates that there must be a minimum profit margin of 20% overall, after deducting all costs related to the project.
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Looking for robust construction financing? Look no further! We're committed to turning your visions into reality with our **Residential Ground Up Construction Program**. Whether you're a seasoned developer or a passionate self-builder, we're here to fuel your ambition.
We offer:
- A FULL **80% Loan to Cost** that covers Land Acquisition, Soft and Hard Construction Costs, giving you the flexibility you need to manage your project effectively.
- Funding for up to **70% of the After Completed Value**. Your success is our success, and we aim to maximize the potential of your property.
But that's not all! We value experience, and we're excited to support you if you've got prior projects of similar proportions, or if you've added substantial square footage to a property.
Whether your project is in the heart of a bustling metro, a serene suburb, or even in a picturesque rural setting (on a case-by-case basis), we've got you covered. The best part? Our program mandates a minimum of 20% profit margin, ensuring your venture is always successful.
So why wait? Let's build your future, brick by brick, with the**Residential Ground Up Construction Program** at NewRepublicFunding.com! 🚀🏗️
*NewRepublicFunding.com - Fueling Your Construction Dreams!*
The Process:
Step 1. Submit your application along with the initially requested documentation.
Step 2. Affix your signature on the Letter of Interest.
Step 3. Acknowledge and sign the Disclosures.
Step 4. Schedule and conduct a Site Inspection/Appraisal.
Step 5. Send your application for Underwriting.
Step 6. Resolve all outstanding conditions.
Step 7. Accept the terms via a Conference Call.
Step 8. Mortgage documents are forwarded to the Title.
Step 9. Distribute the Settlement Statement and provide instructions for closing.
Step 10. Finalize the process with the Closing.