Benefits of New Home Construction Loans
Unlike a traditional property purchase, or even a fix and flip, new construction takes a special kind of financing. Instead of tens of thousands of dollars on the line for upgrades, you might have hundreds of thousands (or even millions) in escrow to cover each stage of development. Even a conventional loan for renovations is bound to fall short of a builder’s demanding needs.
ABL’s New construction loans in Florida are specifically designed to meet the needs of builders and developers: quick closings, fast draw reimbursements, and flexible underwriting. You apply for a short-term loan, typically about 12-18 months long. If you do not already own the lot, ABL may finance up to 60% of the land acquisition. Asset Based Lending will always lend up to 100% of the construction costs, which are released after inspections at the end of each stage of construction. This allows you to pay your contractors on time and keep the project flowing according to schedule.
If your loan has a construction escrow above $100,000, you only pay interest as funds are disbursed. For investors building multifamily properties or other rental units, ABL has developed a Renovate (or Build) To Rent program, which facilitates the transition from short term bridge loan to a longer term loan at a lower cost.
New Construction Loans That Florida Investors Trust
As a seasoned investor, you know that the timing on your funding is crucial to your business. If you get the money too early into the project, you will pay more in interest. Waiting for funds creates construction delays, which are bad for your reputation and will increase holding costs.
By creating an efficient application underwriting, and funding process, Asset Based Lending helps provide seamless financing options with fast turnaround. Our hard money loans require less paperwork than traditional construction loans. As long as you have a developed plan and the experience to ensure a quality product, the approval process may finish sooner than you expect.
Our new construction loans feature:
- Interest rates starting at 8%, with 0-2 points
- Preliminary approval within 24 hours
- Loan sizes from $75,000 to $3 million
- Financing for 100% of construction
- No prepayment penalties
- Extensions available
- Quick loan approval and draw reimbursements
Our experienced loan officers are happy to talk with you about your project and determine if it is a good fit for a new construction loan. With all the necessary details, we may be able to close on the loan in 10 days or less.
Choose Asset Based Lending
New construction is a field bursting with opportunity for experienced investors, and we would like to help you make it run perfectly. If you are looking for the new home construction loans that Florida investors choose first, contact Asset Based Lending or prequalify today.