RE Construction Loans

Spec Residential Construction Loans
1-4 Family Residential construction loan for custom residential real estate borrowers to fund the acquisition of vacant infill residential lots or an existing owned 1-4 Family property that will be demolished, plus the construction costs to improve the subject property for resale purposes.

Term:  12-24 Months

Value:  Loam amounts are calculated using the following Loan to Value to Cost criteria:

RE construction matrix

Rate: WSJ Prime (3.25%) + 2.25 (TBD)

Origination Fee: .50%

Loan Admin Fee: .25%

Payment: Interest Only during construction. The payment is calculated from the amount of funds that have been disbursed.


  • We prescreen your project budget and guarantor personal financial statement
  • Upon review with department management and credit administration (if applicable), we issue an LOI
  • At receipt of LOI and Good Faith Deposit, we initiate appraisal
  • We have the licensed contractor complete an application, supply copy of his general contractors
  • License, cost to construct, plans, signed contract between owners and builder and copy of his general liability insurance for approval
  • The appraisal is prepared from plans, cost to construct breakdown, and site inspection.
  • There can be no other financing on the property during construction so the existing mortgage will be paid off through escrow.


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