Single Family Horizontal Development Lending Guidelines
We offer horizontal development financing for builders and developers Nationwide. We have a range of loans for construction of commercial property to fit your unique requirements. We have decades of expertise in construction and development financing. Below are our guidelines for single family development financing.
Term: Up to 36 months preferred
Target Loan Size: Up to $75,000,000
Structure: Interest only, paid monthly (We can provide an interest reserve)
Rate: Fixed rates between 10% and 14%
Fees: Up to 3% to 5% of loan amount
Loan to Cost: Up to 80% of cost
Loan to Value: Up to 70% of value
Collateral: First or second lien deed of trust/mortgage on the property
Guaranty: Limited recourse in the event of specific bad acts and Completion Guarantees required. Payment Guarantee TBD based on the project and sponsor.
Borrower Equity: The Borrower is to invest required equity into the project prior to funding
Builder EMD: Required to be released into the project prior to funding
Prepayment: Varies by Project
Underwriting: Based on experience of the sponsor, fundamentals of the business plan, location and underlying value of the property
Target Markets: Major metropolitan areas across the United States