With the housing market continuing to be tight, there is a need for new construction in Northern California. When obtaining construction funding through the banks is not possible, an alternative to consider is hard money. We can help with Northern California hard money construction loans. Whether for ground up on a single home, a subdivision, major addition or other project, we have financing options that may be able to help.
Our hard money construction loans are not for homeowners looking to build a home to live in. We specialize in construction loans for investors. Whether a developer, rehabber or builder, we have creative options available.
Typically speaking, our Northern California hard money construction loans will finance up to 80% of the total cost max. In conjunction with a loan to cost cap, there is also a loan to value cap. Most of the time our loans will cap out at 65% of the as complete value max.
In an ideal scenario, plans and permits are in hand and the project is ready to break ground. In that scenario, we can look at your cash in on the project to date and use a loan to value ratio based on the completed project. In this situation we are typically able to put together a loan that will take out existing debt and fund the cost to build as well as interest reserves and fees, staying at or below the 65% mark based on the completed value.
For projects that are not shovel ready, we typically will look to structure the financing as a two stage funding. Stage one would be for soft costs. Once plans and permits are in hand, we would then take out the initial loan with a construction loan to bring the project through to completion.
Construction projects can vary greatly. If you have a project that is in need of financing, it is best to give us a call and discuss your specific scenario. We are always happy to discuss the options we can provide, as well as explore creative ways to structure financing. Call us today at 877 462 3422, or you can visit us online to learn more about our Northern California hard money construction loans.