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. We provide 1 year to build or rehab a property before renting.
For a loan on an existing rental property go to rental loans .
Great Pricing
4.99% or 5.2% interest rate
Great Terms
Single Close , up to 88% LTC
Great Service
We fund and hold our loans on balance sheet
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Loan Terms
| Size | $100,000 - $2,500,000 |
|---|---|
| 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% |
| Interest Rate |
4.9% fixed for 5 Years + 2 Years floating
OR 5.2% fixed for 10 Years + 2 Years floating 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, $500 closing fee |
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Qualifications
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.