Tailored Ground-Up Construction Loans: Your Blueprint to Building Success
What is a GROUND-UP
CONSTRUCTION LOANS?
Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.
At Equity Lending Solutions, we tailor our programs to your experience and your project.
What is a GROUND-UP
CONSTRUCTION LOANS?
Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.
At Equity Lending Solutions, we tailor our programs to your experience and your project.
Ground up Construction Terms
PROPERTY TYPE
Homes with 1-4 Units (5 units and above on a case-by-case basis)
Loan Amount
UP TO US$ 5.000.000 (Loan amount above US $5M subject to longer approval time and additional requirements)
TYPE OF LOAN
Interest only short term loan with a balloon payment at maturity.
MAXIMUM LOAN TO COST
Up to 85%
MAXIMUM LOAN TO ARV
70%
MAXIMUM LOAN TO VALUE
Up to 75%
Term Length
Up to 18 months + 6 months extension.
BASE RATE
STARTING RATE 8.75% (Interest only payments on disbursed amount)
MINIMUM FICO SCORE
700
PREPAYMENT PENALTIES
NO PREPAYMENT PENALTIES
FOREIGN NATIONALS ACCEPTED
+ 0.25 to base rate
EASY DRAW PROCESS
REQUIREMENTS
- 3 months of bank statements
- ID, passport, (US visa for foreign nationals)
- Entity Documents (LLC or Corp), EIN & OP Agreement
- Rehab budget (if applicable)
- 6 months liquidity/reserves
- Non-owner occupancy certification
- SSN for credit report and background check
- Evidence of insurance (full replacement + 500K liability) & builder’s risk insurance (if applicable)
- Minimum Fico score of 700
- Signed loan application.
- Purchase Contract (if applicable.)
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FAQ
Can I finance just the land purchase and then use my own funds for the construction?
We do not offer financing solely for land acquisition unless there’s a commitment to subsequently finance the construction on that land.
What if I can't sell the property immediately after construction and wish to keep it?
If you’re unable to secure a quick sale or choose to retain the property, you can transition to a DSCR Loan which is a loan long-term financing solution with more favorable terms and extended durations.
What are the benefits of ground-up construction?
Ground-up construction offers numerous benefits, including the opportunity for complete customization, the ability to incorporate the latest energy-efficient materials and technologies, and the potential for higher return on investment. By building from scratch, clients can tailor every aspect of the project to their specific needs and preferences, ensuring that the final product aligns perfectly with their vision.
How do you build a house from the ground up?
Building a house from the ground up involves several key steps, starting with obtaining the necessary permits and preparing the site. Next, the foundation is laid, followed by the construction of the frame, installation of utilities, and addition of exterior and interior finishes. Throughout the process, it’s crucial to work with experienced professionals and adhere to building codes to ensure the safety and quality of the finished home.
What happens if project permits get delayed and the loan's due date is approaching?
We understand that construction projects can face unforeseen challenges. In such scenarios, you can request a loan extension of up to 6 months.
Are there any penalties for early payments or settling the "Ground Up Constructions" loan ahead of schedule?
No. At Equity Lending Solutions, we don’t impose any penalties for early payments or for settling the loan before its due date.
What does ground-up mean in real estate?
In real estate, “ground-up” refers to the process of constructing a new building from scratch, starting with an undeveloped piece of land. This approach allows for complete customization of the structure, layout, and design, providing a blank canvas for developers to create a property that meets specific needs and requirements.
What happens if the project's cost surpasses the initial budget during construction?
You can apply for refinancing through another Ground Up Constructions loan.