Ground Up Construction
No matter if you're an experienced builder or a seasoned investor, our new construction loans ensure your project progresses smoothly from lot acquisition to the final walkthrough. We can close loan in as little as 10 days, allowing you to start construction sooner and maintain your timeline.
Program Terms
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Loan Amounts: $100K - $4M
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Rates: Starting at 9.5%
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Points: 1-3
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Geography: Nationwide (except North Dakota, South Dakota)
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Property Types: SFR, Condo, Townhomes, 2-4 units
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Loan Structure: 12-24 Month Terms with interest only payments
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LTVs: Up to 75% ARV(After Renovated Value)or 85% LTC (Loan to Cost) whichever is less
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DTI: Not Applicable (We don’t require tax returns or evaluate your personal income or finances when evaluating your application)
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Business Loan: We only lend to LLCs, partnerships, corporations, or trusts
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Credit Score: 680 minimum
Frequently Asked Questions
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What are hard money construction loans for investment properties?
With most hard money loans, the loan amount is based on the as-is house or lot value combined with repair or construction costs. An additional benefit of a hard money construction loan is that there is no minimum credit score. However, keep in mind that unlike hard money fix and flip loans, experience is essential for an investment construction loan! ABL’s private lenders for construction loans are willing to fund up to 70% of the land value and 100% of the construction budget, capped at 70% of the ARV. With interest rates from 9% to 11%, points ranging 1% to 2% and a loan term of 12 – 24 months, seasoned investors rely on hard money construction loans like these for finance their business.
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Any seasoned investor knows how crucial a quick close can be. Real estate investing is a growth industry, and good deals move quickly. As experienced hard money construction lenders, we close new construction loans for investors in as little as 48 hours, and have an average close time of 10 days, unlike a conventional loan which takes a minimum of 60 days to close.
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What qualifies as a New Construction deal?
The primary definition of a new construction project is a vacant lot that will have a ground-up development or a lot with an existing structure that will be torn down with ground-up development to follow. Heavier renovation projects may be considered as new construction if they consist of an addition to the existing structure with an increase of gross living area greater than 100% of the existing square footage.
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Ground up construction experience is defined as any project that was either sold or refinanced within the last 36 months, was completed within 36 months from start to finish, and falls within Acorn Investment Capital's definition of a new construction project. The Borrower must have appeared on title as the Sponsor for the project. All experience verification is subject to Underwriting’s due diligence.
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