Ground Up Construction Financing For A First Time Builder

[Joyce Ann Magallanes]

Getting asked about this enough lately that I figured I'd just lay it out.

If you're looking at your first ground up build, here's roughly how the financing side works on our end. We go up to 85% of cost and 70% ARV*, and prior building experience isn't something we require, the deal itself is what gets underwritten. 660 FICO is the minimum.

Biggest thing I'd tell someone starting out: get your cost breakdown and ARV estimate as tight as possible before applying, that's what actually moves things along.

If you're planning a first build and want a second set of eyes on your numbers, drop your scenario and we'll tell you where you stand.

*Rates, LTV, and program terms are subject to change and vary based on borrower credit profile, property type, and market conditions. Not all applicants or properties will qualify. This is not a commitment to lend.