Getbreadnow New Construction Loans

New Construction Loan

In a dynamic market with limited lucrative opportunities, New Construction is a popular choice for investors seeking to make a lasting impact on homes, neighborhoods, and communities. Widely regarded as the pinnacle of real estate investing, New Construction presents unique opportunities for long-term investments.

Program Details

Interest Rate:

Rates Starting at 10.49%

Experience Requirements:

Strong credit, liquidity, and experience

Property Type:

Single family, 2-4 unit residential, Multifamily, and Mixed-use

Build Type:

Stick or Modular Build

Max Loan to Cost and Loan to ARV:

Up to 90% LTC and 70% ARLTV

Loan Term:

12-18 Month Term Available

How Interest is Charged:

Interest Charged As Drawn

Project Description:

Land Development or Knockdown Deconstruction

FAQs

What is a new construction loan?

New construction loans provide financing for the building of new properties, covering everything from the purchase of the land to construction costs. These loans are usually short-term and are replaced with a traditional mortgage once construction is completed.

Who should consider a new construction loan?

Individuals or developers planning to build a new property from scratch, who have detailed construction plans and a qualified builder, are ideal candidates for new construction loans.

What are the unique features of new construction loans?

They often involve interest-only payments during the construction phase, with funds disbursed in stages as construction milestones are reached. The loan then converts to a standard mortgage upon completion.

What are the risks associated with new construction loans?

Risks include potential construction delays, cost overruns, and the possibility that the finished property's value may not meet initial projections, affecting the final mortgage terms.

How do lenders assess new construction loan applications?

Lenders evaluate the borrower's creditworthiness, the feasibility and detailed plans of the construction project, the reputation and reliability of the builder, and the projected value of the completed property.

View our other loan programs

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Learn More About Refinance

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Maximize your investment potential, expand your portfolio, and increase your cashflow by investing in commercial/multifamily

Learn More About Commercial Loan

Commercial Bridge

Providing short-term bridge loans specifically designed for commercial/mixed-use and multi-family properties

Learn More About Commercial Bridge

Long Term Loan

Our long term loans designed for real estate investors seeking fixed rate low monthly payments for purchase or refinance

Learn More About Long Term Loan

Fix and Flip Loan

Short term loans for buying and renovating properties. Financing up to 90% of purchase and 100% of renovation

Learn More About Fix and Flip Loan

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