The Lowdown on Construction Loans...
Deferred Interest Payments
No Appraisal Fee
No Application Fee
No Draw Fees
No lender Point Programs
Why Consider Friendly Construction Loans?
- We’re a Local & Direct: with over a decade of experience
- Direct Contact with the Underwriter: Monday – Saturday we’re there for you!
- FREE appraisals: We offer Lightning-Fast Pre-Buy appraisals which can help investors avoid a costly mistake
- High Leverage: Borrow based on the After-Repair Value (ARV) of the property, not just the purchase price
- Fast Closings: we can close Lightning-Fast (in as little as 7–10 days) to help you get your deal get ratified
- Lightning-Fast Draws: same day draws on most deals
How Friendly New Build Loans are Structured:
- Optional Payment Deferrals: Subject to underwriting. Saves on our investor’s cash flow
- No appraisal is required: We underwrite our loans internally at no charge to our investor
- Short-Term: Typically, 12-18 months; the goal is to complete construction and sell the property quickly.
- Fast Funding: Our loans are approved and funded quickly, often verbally in a 5-minute phone conversation followed up by a funding proposal within 24 hours.
- Asset-Based Lending: The approval process is based on the property’s After Build Value and the borrower’s ability to execute the project.
- Loan Structure: Down payments are deal dependent
Friendly New Build Loan FAQs
What experience do I need to qualify for a New Build Loan?
• The investor either needs to have new build experience or plan to have a Class A builder in line to do the build
Will you extend the loan term if needed?
• We commonly extend loan terms if needed
What type of properties do you lend on?
• Commonly on Single Family New Builds.
Can I get a hard money loan if I have a low credit score?
• A good credit score is typically important for us to finance a rental property because it has an impact on the ability of the investor to use refinance into a longer-term loan as an exit strategy.
Is there a limit to the number of deals that I can buy?
• There is no set limit and depends on the investors’ experience, capital investment as well as the overall deal(s) scenarios.
How much money do I have to put in the deal?
• We can typically close within 10 days, sooner depending on the situation.
What documents do I need to get started?
• The exact amount depends on the project, the borrower’s creditworthiness, experience and the overall after build property value. It’s not uncommon for an investor to pay for the land and for us to fund 100% of the construction. Alternately there are instances where the investor puts down 50% of the lot value with our funding the difference as well as providing 100% of the build cost. In some cases, we’ll ask the investor to purchase the lot and have the foundation in place, and we would fund the remaining cost of the build.
How quickly can you close?
• We can typically close within 10 days, sooner depending on the situation.
What documents do I need to get started?
• A copy of the ratified purchase agreement, email address of the closing agent, a verbal budget amount for the renovation costs and we’re set to go.
Do you order an appraisal?
• We do our appraisals in-house and at no charge to our investors.
Does the loan have a prepayment penalty?
• Because we do not charge lender points, we do ask for a 4-month minimum interest.
Why a HARP Loan?
If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal, and without having to pay mortgage insurance.
- Fixed Rates
- Adjustable Rate Mortgage (ARM)
- Keep Your Home
- Terms from 5 to 30 Years
Get Your FREE Construction Loan Quote Now!