We cater to all kinds of construction companies offering unique builder financing programs to meet all your needs. Whether you are a big scale builder constructing hundreds of homes a year, or a home builder specializing in customized construction, or a small builder just starting out, our construction loans are well designed to suit your requirements.
A Construction Mortgage can be used for either the construction of a new home, major renovations to a home or the increasingly common process of teardown and rebuild of infill properties.
Where the increase is greater than 10% of the as-improved value, the advancing options for new construction apply. The standard thresholds for completion of work and advancing funds to you are:
35-40% complete (foundation in, framing stage complete)
60-65% complete (lockup stage, all windows and doors are in)
80-85% complete (finishing stage, if required)
85-100% (completion, if required)
With projects of this scale, it requires a higher level of organization and planning; lenders will request some, if not all of the following items to fairly assess the scope, timeline and cost of the project that you are rolling out:
Development Plans, Architectural Renderings
Site Survey, Environmental Land Assessment
Builder, General Contractor, Sub-Trade Estimates Cost, Timing, Etc.
Appraisal Of Property, Project
The lender will assess the value of the property and the project as a whole. The LTV and Down Payment percentage requirements are based on as-completed value. The as- completed value is used to determine maximum loan amount (maximum LTV varies by product and number of units). The Approved Lender advances directly to the builder during construction.
Please contact one of our Construction Mortgage Professionals for further information how to simplify and guide you through the Construction Mortgage process.
Elias Financial Corp is part of the Verico Brokers Network.