REHAB LOANS
1 to 3-Year Terms
Rehab Construction Capital
1 to 3-Year Fixed & Variable Interest Only Rehab Construction Loans
Loan is fixed or variable for up to 2-years with Private Lenders and 3-years with Banks, with interest only amortization. Loan is due at the end of the term. No prepayment penalty in most cases. Eligible properties include multifamily 5+ units, 1-4 unit residential, condos, office, retail, industrial, manufactured housing, self-storage, hotels, and healthcare. Rehab Construction Loans are short-term interim loans designed for minor to major rehab projects prior to securing long-term financing or disposition.
Understanding Loan-to-Cost Ratio
| PRIVATE CAPITAL CONSTRUCTION & REHAB LOAN DETAILS | |
| Leverage: | Ground-Up Construction Loans: Max ARV: 65%
Max LTC: 80% to 85% Total project cost is the cost of the property plus all past and planned hard and soft costs associated with the project. Build Cost: Up to 100% Min Credit: 650 Rehab Loans: Max ARV: 75% Max LTC: 85% Build Cost: Up to 100% Min Credit: 650 SBA loans have a max LTC of 90% |
| Loan Amount: | Ground-Up: $100K to $100MM+
Rehab: $100k+ |
| Experience: | Prior construction / rehab experience highly preferred. |
| Property Types: | Most property types considered. Multifamily, office, retail, industrial, mixed-use, specialty use, 1-4 unit residential. |
| Occupancy: | Owner occupied residential developments, investment properties, commercial owner-user. |
| Rate: | Starting rate a Prime + 2%. Rates are project specific and heavily based on sponsor experience. |
| Liquidity: | Minimum 10% of project budget + minimum 6-months interest reserves |
| Amortization: | Interest only during construction. |
| Reserve account: | A reserve account will be used to make monthly payments on behalf of Borrower until construction phase is finished and property is ready for take-out financing. |
| Builder: | Must be approved by lender. |
Required Documents for Loan Review
- Sponsor resume / track record
- Sponsor personal financial statement
- Project scope of work / budget
- Schedule Real Estate Owned
