RE 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 re-sale purposes or refinance.

Term:  12-24 Months

  • Certificate of occupancy issued

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

Rate: 1 Month LIBOR + Margin (5.25% – 5.50%)

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

– 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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