New Construction Loans

A: No, hard money lenders require that all properties be non-owner-occupied and purchased for investment purposes.

A: A hard money loan is a loan issued by a private lender instead of a traditional mortgage company or bank, which is traditionally for owner-occupied only. Hard money loans are purpose-built for non-owner occupied properties to cover percentage of the purchase price and typically up to 100% of the of the renovation/repair costs with the final purpose to resell or rent.

A: Attaining a loan for New Construction requires a minimum credit score of at least 620.

A: Unlike some other types of hard money loans, new construction loans depend on whether you already own the property. You are required to pay a minimum down payment of 35% on the property purchase if you haven't acquired it yet but only 10% down payment on any of the construction costs. So depending on if you own the property yet and the cost ratio of purchase to construction costs, you can take out anywhere between 65% to 90% of the total all-in cost out as a loan.

A: Loans for new construction properties vary in size but should be at least $75,000 and normally do not exceed $2 million.

A: No. In order to qualify for a hard money loan it must be funding a new construction that is on a permanent foundation.

A: Generally not unless you have prior experience and/or licensing as a general contractor.

A: Unfortunately, No. Manufactured or modular homes are not covered and the construction must be on-site of the land/property for a new construction hard money loan.