What is a New Construction Loan?
New construction loan 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.
New Construction Loan TERMS
Max Loan Amount:
$1,000,000
Max LTV (Loan to Value):
Experienced Investors:
The Lesser of 82.5% LTC or 70% ARV.
Inexperienced Investors:
The Lesser of 65% LTC or 55% ARV.
Rate:
Starting at 10.5% - vs 9.5%
Term of loan:
12-24 months
Payments:
Monthly Interest Payments with Balloon at Maturity
Prepayment penalty:
None
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%
(Approximate)
property types
- Condominiums.
- Single-family residences.
- Two to four units.
- Multifamily homes.
- Townhouses.
- Other property types case by case
standard requirements
- 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
Closing time
The Usual Time to Close is 10-20 days.
Why choose Ubridge?
Fast Closing
Approval within 24-48 hours, average closing within 7-12 days. Including borrowers with no credit history.
Dedicated service
Personalized guidance and continuous follow-up that transforms your dreams into reality.
Competitive rates
We offer the most competitive rates, ensuring that your financing aligns with your financial goals.
No Prepayment Penalty
There are no penalties for paying off or partially amortizing the debt at any time.
