Building From the Ground Up Without Ground-Up Experience

[Joyce Ann Magallanes]

New construction financing has a reputation for being the hardest type of deal to get funded, especially if you have not built before. Most people assume you need a portfolio of completed builds before a lender will even look at the deal.

That is not universal. There is a ground-up construction program running up to 85% of cost and 70% of ARV*, with a 660 FICO minimum, and no prior construction experience required to qualify.

For investors who have done rehabs but never built new, this is often the missing bridge. The underwriting is looking at the deal and the numbers, not demanding a completed build history you do not have yet.

If a new construction deal has been sitting on your list because you assumed the experience requirement would rule you out, it might be worth a second look.

*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.