$100,000 to $3,500,000
30 yrs
1
Loan Type Bridge Loan, Commercial Loan, Construction Loan, DSCR Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Mixed use, Multi Family, SFR
NATIONWIDE Construction Loan Lenders
Below is a list of 26 Lenders that offer construction loans in Nationwide. Interest Rates vary on a case-by-case basis but are typically offered from 6% to 16%. In addition, these lenders provide loan amounts from $15,000 and $1,000,000,000.
$800,000 to $6,000,000
2 years
10.25% - 12%
Loan Type Bridge Loan, Construction Loan, Hard Money Loan, Private Money
Property Type 2-4 Units, Mixed use, Multi Family, SFR
$1,000,000 to $20,000,000
2 years
1 - 2%
Loan Type Bridge Loan, Construction Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Condo, Industrial, Land Entitled, Medical Office, Mixed use, Multi Family, Retail, Self-Storage, SFR
$150,000 to $1,000,000,000
1 year, 1.5 years, 2 years
8.75% - 14.75%
1 - 2%
Loan Type Bridge Loan, Commercial Loan, Construction Loan, DSCR Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Cannabis Related, Condo, Mixed use, Multi Family, SFR
$75,000 to $3,500,000
6 months, 1 year
6.75% - 13%
2 - 3%
Loan Type Bridge Loan, Construction Loan, DSCR Loan, Rehab Loan
Property Type 2-4 Units, Multi Family, SFR
$55,000 to $5,000,000
1 year, 1.5 years, 2 years, 3 years, 4 Years, 5 years, 30 Years
8% - 12.75%
2.5%
Loan Type Commercial Loan, Construction Loan, DSCR Loan, Rehab Loan
Property Type 2-4 Units, Condo, Multi Family, SFR
upto $50,000,000
1 year, 2 years, 40 Years
Loan Type Commercial Loan, Construction Loan
Property Type Multi Family, Skilled Nursing
$75,000 to $5,000,000
18 months
7%
Loan Type Bridge Loan, Commercial Loan, Construction Loan, DSCR Loan, Rehab Loan
Property Type 2-4 Units, Condo, Multi Family, SFR
$1,000,000 to $50,000,000
1 year, 1.5 years, 2 years, 3 years
Loan Type Bridge Loan, Construction Loan, Hard Money Loan
Property Type 2-4 Units, Automotive, Gas Station, Hotel, Industrial, Medical Office, Mixed use, Mobile Home Park, Multi Family, Office, Restaurant, Retail, Self-Storage, Shopping Center, Special-Use, Strip Center
$75,000 to $7,000,000
30 yrs
1 - 4%
Loan Type Bridge Loan, Commercial Loan, Construction Loan, DSCR Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Multi Family
The Importance of Experience in Ground-Up Construction Projects: 5 Tips for Success
Embarking on a ground-up construction project demands a wealth of knowledge, expertise, and a track record of successful ventures. Whether constructing a new home, commercial building, or development project, experience plays a pivotal role in qualifying for such endeavors. Lenders and stakeholders often seek assurance in a builder’s capability, typically requiring a demonstration of past experience to instill confidence in the success of the project.
1. The Qualification Criteria: Typically 3 Similar Projects Within the Last Five Years
In the realm of ground-up construction projects, meeting specific qualification criteria is crucial. Among the key benchmarks frequently sought by lenders and stakeholders are a builder’s past projects. Typically, to qualify for ground-up construction, builders need to demonstrate a track record of at least three completed projects within the last five years. Projects over five years ago may not be taken into consideration.
2. You Must Be on Title for These Past Projects
Moreover, it’s imperative for builders seeking qualification to have been on title for those past projects. Being on title signifies direct involvement and responsibility for the project’s success, demonstrating firsthand experience and accountability in overseeing the construction process from start to finish. Being a contractor, or a family member of someone who has done ground-up construction does not count, unless you were on the title.
3. Experience in Construction Projects: Ground-Up vs. Rehab Loans
Keep in mind that ground-up construction experience requirements and rehab experience requirements vary greatly. Lenders specializing in rehab projects may offer terms to those with limited or no rehab experience, where as ground-up almost always requires previous experience, or you may be looking at extremely high rates and/or fees to obtain financing. Recognizing the difference in expertise needed for property rehabilitation compared to building from scratch is something to consider before planning out your project.
4. Have Your Past Project’s Documentation Available
Lenders and stakeholders often require comprehensive documentation as evidence of a builder’s experience and capability. Therefore, maintaining organized and detailed records of previous construction projects is essential.
Keep the following information about your past projects on hand:
- Acquisition date
- Purchase price of the property
- Construction budget
- How much it sold for
- Sale date
- Percentage of ownership if shared
5. The Importance of a Good Credit Score When Doing Ground-Up Construction
A credit score can make or break a ground-up construction project. You are typically looking at a 680 minimum credit score to get a ground-up project off it’s feet. A good credit score can:
- Increase the likelihood of loan approval and access to diverse loan options.
- Provide access to better interest rates leading to reduced overall borrowing costs.
If you have a credit score that is lower than 680, some factors that would help your chance of success would be having a lot of equity in the land or existing property, having a good amount of cash on hand, and having excellent past project experience.
Showing Up Prepared for a Ground-Up Project
Understanding the specific requirements for ground-up construction, especially the significance of direct involvement and past project experience on title, is crucial. Preparation, documentation, and a comprehensive understanding of the qualifications are key when seeking financing for ground-up construction projects. Having your old project’s documentation prepared to send to the lender will also give you a foot up in the process. All of this preparation ensures not only that you are meeting the lender’s criteria but also signifies your readiness and capability to successfully navigate and oversee the complexities of a new ground-up construction venture.
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How to Budget Properly for a Construction Project
Budgeting is a critical aspect of any construction project, regardless of its scale. Proper budget planning ensures that resources are allocated efficiently, costs are managed effectively, and the project stays on track financially. Here are essential steps to help you budget properly for your construction project:
1. Define Project Scope and Objectives:
Begin by clearly defining the project scope and objectives. Understand what needs to be accomplished, the project’s purpose, and the desired outcome. Detailed project specifications help in estimating costs accurately.
2. Create a Detailed Cost Estimate:
Develop a comprehensive cost estimate that includes all aspects of the project. Consider materials, labor, equipment, permits, subcontractor fees, overhead costs, and any contingencies for unforeseen expenses. Use historical data, quotes from suppliers, and industry benchmarks to make accurate estimations.
3. Allocate Contingency Funds:
Include contingency funds in your budget to account for unforeseen circumstances or changes during construction. Typically, a contingency of 5% to 10% of the total project cost is advisable to cover unexpected expenses without disrupting the budget.
4. Identify and Prioritize Costs:
Categorize costs as fixed or variable and prioritize them based on their significance to the project. Ensure essential costs are accounted for first, such as structural components, before allocating funds to aesthetic or non-critical elements.
5. Regularly Monitor and Adjust the Budget:
Continuously monitor the budget throughout the project’s duration. Track expenses, compare them against the estimated costs, and identify any deviations. Adjust the budget as needed to maintain financial control and address any cost overruns promptly.
6. Consider Sustainable and Cost-Efficient Alternatives:
Explore sustainable and cost-efficient alternatives for materials and construction methods. While initial costs might be higher for eco-friendly options, they can result in long-term savings through reduced operational expenses and maintenance.
7. Collaborate and Communicate Effectively:
Maintain open communication with contractors, suppliers, and project stakeholders. Collaboration helps in understanding cost implications, potential savings, and finding innovative solutions to stay within budget.
8. Review and Learn from Past Projects:
Learn from past projects by reviewing their budgets and identifying areas for improvement. Analyze what worked well and where cost-saving measures could have been implemented.
Successful Budgeting Equals Project Success
Proper budgeting is fundamental to the success of any construction project. By defining project objectives, creating detailed cost estimates, allocating contingency funds, prioritizing costs, and maintaining open communication, you can ensure that your project stays within budget constraints. Effective budget management not only controls costs but also enhances project efficiency, ensuring successful completion within the allocated financial parameters.
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