New Construction Loans
New construction loans are short-term loans used to finance the building or renovation of a home or real estate project. The initial draw will be calculated based on the As-is Value of the Property and the renovation budget will be advanced in construction draws.
Standard Loan Terms
- Max Loan Amount: $10,000,000
- Max LTV/LTC:
– Experienced Investors: 60% of After Completed Value or 70% of Project Cost (The lowest)
– Inexperienced Investors: 50% of After Completed Value or 60% of Project Cost (The Lowest)
– Experienced Investors: 7.99%-8.99%
– Inexperienced Investors: 8.99%-9.75%
- Term of loan: 12-18 months
- Payments: Monthly Interest Payments with
Balloon at Maturity
- Prepayment penalty: None
Standard Closing Costs
- Origination Fee: 1-2%
- Underwriting Fee: $1,500
- Feasibility and Contractors Report: $1,200
- Draw Fee (for future draws on the loan): $400
- Legal: $750 – $1,500
- Appraisal Fee: $500-$950
- Title Insurance and recording fees: 1%
- Single-family residences.
- Two to four units.
- Multifamily homes.
- Other property types case by case
- Credit Application
- Last 2 bank statements (US bank account)
- Copy of ID and Borrowing Entity docs
- Purchase Contract (If Purchase)
- Project budget/ Scope of work
- Approved plans (If applicable)
- Track Record Sheet
- Contractors information
- Property Insurance
Standard Closing Time
- The Usual Time to Close is 20-30 days.
RBI Mortgages is a direct lender and does not rely on other institutions to close the loans. Once the title work, appraisal, and feasibility report are ready, We will be too!