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: $5,000,000
Max LTV/LTC: 55% of appraised value or 65% of project cost (The lowest)
Term of loan: 12-24 months
Payments: Monthly interest payments with full balloon at maturity
Description of draws: At closing an initial draw (based on the As-is Value of the land). Construction cost will be disbursed in draws according to the work progress.
Prepayment penalty: None
- 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
- Project budget/ Scope of work
- Approved plans
- Track Record Sheet
- Contractors information
- Property Insurance
Standard Closing Costs:
Origination Fee: 1.5-2%
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% (Approximate)
Standard Closing Time:
The usual time to close is 15-20 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!