Construction Loan
Construction
Program #LG88
Construction
Program #LG88
Summary of all Guidelines | |
| Loan Types | Construction Loan |
| Property Types | 2-4 Units, Condo, Multi Family, SFR |
| Lendding Area | alabama, arizona, arkansas, california, colorado, connecticut, delaware, florida, georgia, hawaii, idaho, illinois, indiana, iowa, kansas, kentucky, louisiana, maine, maryland, massachusetts, michigan, minnesota, mississippi, missouri, montana, nebraska, nevada, new-hampshire, new-jersey, new-mexico, new-york, north-carolina, north-dakota, ohio, oklahoma, oregon, pennsylvania, rhode-island, south-carolina, tennessee, texas, utah, virginia, washington, west-virginia, wisconsin, wyoming |
| Loan amount Minimum | $100,000 |
| Loan amount Maximum | $15,000,000 |
| Terms | 1 year, 18 month |
| Typical Days Required to Fund | 11-15 Business days |
| Credit Score Min | 620 |
| Interest Only or Amortized | Interest Only |
| Fees | Processing Fee |
| Entities | LLC - Limited Liability Corporation, Taking Title Personally not permitted, Corp - Corporation, Foreign National, Individual |
| Extensions Available | Built-in |
| Cross Collateralize Blanket | No |
| Lien Position | 1st |
| Max Points Charge by Broker | 3 |
| Prepayment Penalty | No Prepayment Penalty |
| Fixed or Adjustable | Fixed |
| Recourse | Recourse and Non Recourse available |
| General Pricing or Guideline info | Personal guarantees are required unless they choose the non-recourse option in the fix-n-flip, bridge, or new construction loans – borrowers only qualify for the non-recourse option if they have at least 5 deals in the last 3 years. Loans for builders with shovel-ready lots or teardown projects. Spec houses or model homes, infill, teardown, or subdivisions. >> New Construction: Increase Lot LTC from 60% to 65% Increased LTARV from 65% to 70% Continuing to fund 100% of vertical construction costs. ------- Experience Requirement Each entity must have at least one member with verified experience. If your borrower doesn’t meet that, they can add a mentor or partner on their first few projects. Definition of an Exit An exit is the sale or refinance of an investment residential property completed within the past 36 months. To qualify, the individual must have been on title, part of the entity on title, or the General Contractor (GC) on a verified ground-up build. Exit Counting Rules 1–9 unit properties: 1 exit per parcel 10+ unit properties: (Total units ÷ 2) = number of exits As General Contractor Rules Counted as 1/2 exit if not on title Ground Up or Flip Experience for relevant product (GC for GUC or Rehab for Flip) Subject project must be similar in scope to experience Must be verifiable by Certificate of Occupancy (CO) or Building Permits Flips or rehabs not on title do not count toward exits unless as GC. New Construction Tier 3 = 3 exits Tier 4 = 6 exits Tier 5 = 12 exits |
| Updated as of | 2026-03-05 |
Personal guarantees are required unless they choose the non-recourse option in the fix-n-flip, bridge, or new construction loans – borrowers only qualify for the non-recourse option if they have at least 5 deals in the last 3 years.
Loanss for builders with shovel-ready lots or teardown projects. Spec houses or model homes, infill, teardown, or subdivisions.
>> New Construction:
Increase Lot LTC from 60% to 65%
Increased LTARV from 65% to 70%
Continuing to fund 100% of vertical construction costs.
-------
Experience Requirement
Each entity must have at least one member with verified experience.
If your borrower doesn’t meet that, they can add a mentor or partner on their first few projects.
Definition of an Exit
An exit is the sale or refinance of an investment residential property completed within the past 36 months.
To qualify, the individual must have been on title, part of the entity on title, or the General Contractor (GC) on a verified ground-up build.
Exit Counting Rules
1–9 unit properties: 1 exit per parcel
10+ unit properties: (Total units ÷ 2) = number of exits
As General Contractor Rules
Counted as 1/2 exit if not on title
Ground Up or Flip Experience for relevant product (GC for GUC or Rehab for Flip)
Subject project must be similar in scope to experience
Must be verifiable by Certificate of Occupancy (CO) or Building Permits
Flips or rehabs not on title do not count toward exits unless as GC.
New Construction
Tier 3 = 3 exits
Tier 4 = 6 exits
Tier 5 = 12 exits
- Nicolai Lipscomb
Senior Loan Officer
