Construction Financing has been our specialty since 1991. We provide financing for both single family and small multi-family residential projects. We are able to lend up to 85% of the combined land and construction costs to a maximum of 75% of the appraised value of the finished project. Our construction loans are funded in stages based upon progress reports and draws are calculated on a cost-to-complete basis using the builder’s budget.
Our typical borrower is an independent builder constructing ‘spec’ homes or multi-family projects. The term ‘spec’ refers to speculative in that the builder has no known purchaser when he commences construction. Because the house will be sold at completion, we do not require the borrower to qualify through debt service abilities. We are an equity lender. We do, however, require that the borrower demonstrate that they have the skills to successfully undertake the project.
If the borrower is going to live in the house (i.e. it is not spec), then we will need to see that they will be able to qualify for a conventional mortgage. Once the project is complete, the borrower is free to obtain a conventional mortgage at their bank or credit union.