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Hard money new construction loans, first build included
A hard money lender for new construction. We fund 90% of your lot and build budget for homes built to sell or rent, including your first build.
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Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
Hard money for new construction
A hard money construction loan is a short-term loan from a private lender, based mainly on the deal: the lot, the plans, the budget and what the finished house should sell for. Investors use hard money for new construction because banks rarely fund spec builds or builders without a track record.
Hard money construction loans: what we fund
| Term | Ground Up Construction Lending |
|---|---|
| Share of lot and build funded | 90% |
| Your share | 10% |
| Building experience required | None |
| Build budget paid | In draws as work is completed |
| Loan purpose | Build to sell or rent (investment property) |
| Deal | Amount |
|---|---|
| Lot price | $120,000 |
| Build budget | $480,000 |
| Total cost | $600,000 |
| We fund 90% | $540,000 |
| Sale price when finished | $820,000 |
| You bring (10%) | $60,000 |
When hard money makes sense
- You are building to sell, not to live in the home
- You have not completed a build before
- You want one loan for the lot and the build
- You want to keep most of your cash free, bringing 10% instead of 20% to 30%
Questions builders ask
Straight answers about hard money new construction loans.
What is a hard money construction loan?
A short-term construction loan from a private lender, based mainly on the project rather than on bank-style income documents.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
Do I need building experience?
No. We lend to first-time builders with no completed projects, as well as to experienced builders.
How is the build budget paid out?
In draws. As each stage of the build is completed, the work is inspected and that stage's money is released.
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