New Construction & Development
Develop and Sell
No matter the size of your building construction company, financing for new construction on ready-to-build projects may be available. These short-term ground up construction loans can be utilized by spec builders on a small scale, production builders on medium-sized real estate projects up to sophisticated developers on very large projects.

Smaller New Construction Projects
The new construction loan for smaller projects typically have the following characteristics:
property types: single-family homes, townhouses, 2-4 unit residences
terms are covering the construction build period from 1-2 years
interest only payments with no prepayment penalties
loan amounts from $75K to $2.5M
maximum loan sizes up to 70% LTV and 90% LTC
both hard and soft costs directly related to the build can be financed
non-recourse for experienced builders
If the builder would like to retain ownership of the property upon completion in order to hold as a rental property, this is also possible. This short-term loan would require interest only payments during the construction period and then convert to a long-term rental loan. Maximum loan sizes may be smaller up to $1M and full recourse options only.
Larger New Construction Projects/Developments
The new construction loan for larger projects typically have the following characteristics:
property types: large residential developments (e.g. multi-family complexes and communities), senior living, office, industrial, and retail on land already entitled
terms are covering the construction build period from 1-5 years
interest only payments with no prepayment penalties
loan amounts from $2.5M to $50M
maximum loan sizes up to 85% LTC and also minimum debt service coverage of 1.25x
previous development experience required as well as net worth and credit qualifications
The loan can also have a permanent option if there is intent to hold the large development after completion as an income-producing asset.
If you are a business owner wanting to finance new construction of a building for your business (i.e. at least 51% of space to be occupied by your operation), SBA loans for this purpose are available under the section 7(a) and 504 programs. For more info, visit the SBA loan page.