New Construction

The Private Commercial Finance & Capital Group, LLC now has more options for real estate investors in 2018! We now carry NEW construction loans! The terms and rates listed in our guide are examples of what you could receive for your particular property. All loan programs, terms and rates are based on property valuation and borrower credit. Your first step is to review the underwriting guidelines for these loans. Download a free copy now.

THE NEW CONSTRUCTION LOAN

Loan Use: This loan is for new construction only.

Investor Must Own Land Outright

LENDER ALSO OFFERS 90% LAND ACQUISITION & 90% CONSTRUCTION FUNDING!

 

LEVEL 1

EXPERIENCE: 0 or 1 build in last 24 Months

FICO: 600-679

Land Cost** Must be 15% or greater than Build Budget

Build Budget Must be 65% or less than ARV

100% of Construction Funded in Draws

Rate: 12%

 

LEVEL 2

EXPERIENCE: 2 to 4 builds in last 24 Months

FICO: 680+

Land Cost** Must be 10% or greater than Build Budget

Build Budget Must be 70% or less than ARV

100% of Construction Funded in Draws

Rate: 10.75%

 

LEVEL 3

EXPERIENCE: 5+ builds in last 24 Months

Land Cost** Must be 10% or greater than Build Budget

Build Budget Must be 70% or less than ARV

100% of Construction Funded in Draws

NO INTEREST CHARGED ON UNDRAWN CONSTRUCTION FUNDS

Rate: 9.5%

 

**Metric is Land COST rather than VALUE because it is considered the down payment.

Minimum Loan Amount: $100,000

Minimum Origination Fee: $3,500

Points to Lender: 2.5%

Fee to PCFC Group: $750

Loan Term: 13 Months

Prepayment Penalty: None

Processing Fee: $495

Borrower Paid Subject-To Appraisal: Market Value

Cash Out: Options available with land cost in excess of metric. Case by Case Basis.

 

Escrow Draw System

Draws: Borrower requests draw. Inspector performs site visit. Disbursed upon receipt of report. Payments made for Installed Materials and Completed Labor.

Draw Turn Time: 72-96 Hours

Draw Fee: $150

 

Borrower Qualification

Lending To: LLCs and Corporations. No individuals or non-profits.

Asset Warranty: Down Payment + Origination Fee + 6 Months Interest + 10% Build Budget

Seasoning: None

Sourcing: Any Deposits over $10,000 in last 2 Months

Minimum FICO: 600

No Bankruptcy or Foreclosure within the last 3 years

No Felonies in last 7 years

No State or Federal Tax Liens
 

Documents Required

• Clear Copy of Guarantor Photo ID
• Two most recent bank statements showing liquid assets
• Business Entity Docs – Signed Operating Agreement, Certificate of Good Standing, and Articles of Organization
• Purchase Agreement (if applicable)
• Detailed Construction Budget (We will provide that form to you)
• 12 month builder’s risk policy quote (property insurance)
• Completed Loan Application

Be sure to download our most up-to-date loan guide using the button below!

DOWNLOAD OUR LOAN GUIDE


Dear Investor, feel free to review our loan programs listed in our program book. I think you will be excited by what we have to offer! After a review, download our loan application. I look forward to working for you! Feel free to call me at 804-658-7179 or send me an email message to troy@pcfcgroup.com.Troy Ross, Private Money Broker