Ground-up construction of 1-4 unit residential properties. Min loan amount of $150k.
For ground-up loans, we lend in metropolitan statistical areas that have at least a population of 10,000.
We cannot lend against multifamily of 5+ units, mixed-use, commercial or special purposes properties such as Gas Station, Convenience Store, Car Wash, Auto Dealership, Auto Repair, Self-Storage, Boat Storage, Restaurants, Hospital, Medical Facilities (Surgery, Nursing, Rehab), Assisted Living, Schools, College, University, Religious Facility, and Sports Facility.
If the property is weathertight then it would be consider a renovation/rehab loan.
We typically do not require an interest reserve.
Only a commercial unit.
In certain circumstances we may be able to consider lending against land. The land value would need to be $500k or more.
Yes – properties owned for less than 12 months will be evaluated against the purchase price and capital expenditures incurred since purchase.
There is no prepayment penalty requirement but it does impact the rate — the lower the prepayment penalty term, the higher the rate.
Yes, all loans require a personal guaranty from any member owning at least 25% of the borrowing entity, with a minimum of 51% of the owners providing a guaranty.
