Using Hard Money for New Construction Loans
Financing new development takes the right balance of quick funds and flexible underwriting. Since most conventional lending isn’t designed for investment property construction projects, the processes and underwriting involved in these loans likely won’t meet the requirements of the experienced investor. Hard money loans for new construction are typically much for effective for the new construction investor. While a conventional loan focuses primarily on traditional credit and risk underwriting, hard money prioritizes the borrower’s real estate investing experience and the profitability of the project itself.
The hard money loan process for new construction is simply built differently; these loans are designed for investors with their needs in mind. The entire process is streamlined, from initial underwriting to loan processing/closing, and especially the draw management throughout the project. These short-term loans typically last about 12-18 months and range from $75,000 to $3 million or more.
Why Investors Choose ABL for Construction Loans in PA
If you are a successful investor or contractor, you need an experienced lender with the knowledge of your local market and the ability to analyze your application quickly and effectively. ABL’s personal service and efficiency makes our loan application process convenient and customized to suit almost any project. After a brief conversation with one of our loan officers, we’ll be able to quickly tell you if a project fits our guidelines, and how we would lend on it.
Instead of spending months in underwriting, our team acts quickly. Assuming that your plan and investing experience meet our guidelines, we can approve a loan in 1 day and close in 10 days or less. A few benefits of our new construction loan program include:
- Interest rates as low as 8% to 9%
- Zero-point loan program available
- 100% construction financing
- Preliminary approval within 24 hours
- Professional draw management team
- No prepayment penalty
- Extensions available
When you compare the convenience and flexibility of hard money lending to the cookie-cutter processes of conventional loans, it is easy to see why Pennsylvania investors come to ABL.
Running a business in new construction requires financing that can meet your needs — right when you need it. When you contact Asset Based Lending, you will discover how our team of experts can help put your plan into action seamlessly. To prequalify, call us or visit our website today.