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88% LTC available

SINGLE CLOSE, build or fix then hold. We provide 1 year to build or rehab a property before renting. For builders and investors. Rates shown assume 740+ credit, if 700-739, 680-699, or 660-679 add 0.2%, 0.4%, or 0.9%, respectively. For a loan on an existing rental property go to rental loans.

8.2% - 8.5%

Fixed interest rate available

Single Close

Includes a full year to build / renovate

Great Service

We fund and hold our loans on balance sheet

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Loan Terms

Size $100,000 - $3,000,000
Loan-to-Cost 88% subject to qualifications
Term 5 Years + 2 Year Extension OR
10 Years + 2 Year Extension
Build Phase 1 Year for construction or rehab
Recourse Full
Payment Year 1: Interest Only with interest reserve
Year 2 and later: 30 year amortization or interest only available on 7 year
Origination Fee 2.5%
Interest Rate 8.2% fixed for 5 Years + 2 Years floating OR
8.5% fixed for 10 Years + 2 Years floating

Rates assume 740+ credit. Rate during an extension is floating at the greater of Prime +1% and the original fixed rate.
Interest Only Year 1 on all. Full term available on 7 year, add 0.25% to rate.
Other Third-party costs, $950 underwriting fee, $150 draw fee
  • Qualifications
    Property An eligible property is a 1-4 unit residential structure.
    Experience To be eligible for the highest LTC must have done 20+ spec or rental houses since 2011 (an “Experienced” borrower). For the lowest level, only need to have 5 houses of experience. Note that a qualified GC can contribute 3 homes of experience.
    PITIA Expected gross rent divided by Loan interest and principal using a 30-year amortization schedule, real estate taxes, insurance and association dues (“PITIA”) must be at least 1.20x or, if Sponsor has under 3 years of verifiable rental ownership experience, 1.30x.
    Appraisal The appraisal is acceptable to Builder Finance Inc. and without any of the following issues: lack of adequate sales comparables, the property characterized as non-conforming, the market having declining values, or marketing time listed at over 6 months.
    Population Within a 3-mile radius of the subject property, there is a growing population of at least 25,000 people. The house is affordable for its market.
    Net Worth Net worth excluding primary residence(s) of at least $650,000.
    Liquidity Average balance at bank(s) of at least $50,000.
    Credit Score Minimum required credit score is 660. Pricing shown assumes 740 or higher credit.
    Character / Background Acceptable background history and working relationship with Builder Finance Inc.

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