Construction Loans
Construction Loans – MONEY FOR NEW CONSTRUCTIONS
- Working capital
- Purchase of equipment & materials
- Etc.
- Please bear in mind that our lenders are very interested in the feasibility of the loan, the capability of the borrower managing this business, the borrower’s credit worthiness and financial capacity to undertake such a business.
- The borrower must have some money into the deal and take some of the risk in order to obtain financing.
- The borrower should have a personal net worth of approximately the same amount as the loan request.
- Required Documents:
- Loan Summary Sheet (a short report covering the nature of the project, history of the developer, builder and/or owner of the project)
- Photographs (color photographs or artist’s rendering of the project, if not in appraisal).
- Maps (of the area and property).
- Pro-forma (a projected profit and expense for 3 years).
- Construction Cost-Breakdown (a detailed cost analysis of hard and soft costs including a copy of all bids).
- Construction Loan Worksheet.
- Construction contract (signed and dated by contractor, including his/her resume).
- Appraisal (an original M.A.I. Appraisal with color pictures, showing the income, market, and cost approach to value).
- Plans and specifications (an approved set of working blueprints, including a plot map and a list of construction specs).
- Marketing data (such as advertising, sales staff and promotions to be used in achieving the income objectives).
- Feasibility (an analysis of the feasibility of the project, including market, location, cost, and income of the project).
- Preliminary title report.
- Leases (if project is to be leased, include amount of pre-leasing and a sample copy of the lease).
- Estimated starting and completion dates.
- Resume of developer.
- Current Financial Statement of principals.
- Last 2 years personal tax returns of principals.
- Signed Fee Agreement.
- Other documents:
- Land deed, or purchase or option contract showing ownership.
- If ground is leased, copy of lease and subordination agreement.
- Management contract, if project will be managed professionally.
- Details of present financing on property, including copy of existing mortgage.
- Articles of incorporation, partnership agreements.
- Sample Programs:
TODAY’S BANK PRIME RATE IS – 4.25%
Loan Type |
Property type |
Loan Amount |
Loan To Value |
Debt Service Ratio |
Loan Term |
Amortization |
Interest Rate |
Comments |
Adjustable |
Construction |
ALL |
75% |
1.20 |
12 – 18 Months |
Interest Only |
1 – 2% Over Prime |
Some construction loans may require a takeout commitment |
To get started:
Print the worksheets from the Printable Forms page. Fill them out then fax or mail it to us. Please inform us of its arrival.
- Loan Summary Sheet
- Construction Loan Worksheet
- Construction Cost-Breakdown
