BUILDERS & INVESTORS: HERE’S HOW CONSTRUCTION FINANCING ACTUALLY WORKS

If you’re looking to build non-owner occupied 1–4-unit properties, understanding the structure of your financing is critical.

Here’s a simple breakdown of how our construction loan program works:

LLC Lending Only - All loans are made in the name of an LLC—designed for builders and investors, not owner-occupied borrowers.

Experience-Based Leverage - Your loan-to-cost increases as your experience grows:

• 1st build → up to 80% LTC

• 2 builds → up to 85% LTC

• 3–5 builds → up to 93% LTC

• 6+ builds → up to 95% LTC

Loan Terms

• $500K – $6MM loan amounts

• 12–18-month construction timelines

Draw Process Funds are released based on completed work—you complete the phase, then request a draw. (No upfront lump sum at closing)

Project Strategy This is designed for build-to-sell or build-to-ren t(with refinance into a permanent loan after completion if holding)

Additional Notes

• 6 months reserves required

• Land owned? Possible opportunity to include closing costs & interest reserves (case-by-case)

• No manufactured, mobile, or modular homes