New Construction Loan

Ground-up construction financing for builders and investors

Get Started with a New Construction Loan

Our Construction Loans provide builders and investors the financing they need for ground-up construction and land acquisition.

Key Facts about our New Construction Loans1

  • Ideal for build-ready infill, tear down, and spec homes in urban locales
  • Not for tract home projects or new subdivisions (10+ homes)
  • Mid-Construction17 financing options available
  • Loans available for single family and multi-family properties
  • 12 or 18 month loans terms
  • Foreign Nationals eligible
New Construction Loan
Loan Purpose
  • Ground-up construction loans for developers and investors building 1-5 properties at a time
  • Lot financing can be included, if lots are in build-ready condition
  • Program includes exposure limit (LOC) for experienced large volume investors, with options for inexperienced investors
Interest Rate1
6.75% and up
Loan Amount
$100K minimum
Single Unit up to $1MM / Multi-Unit (2+) up to $1.5MM
Term
12 months (standard), with optional extensions
Borrower Type
Individual or Entity
Minimum Experience
Minimum (1) New Construction experience for max leverage or (1) Fix & Flip experience for reduced leverage. Experience is based on a 36 month lookback period.17
MAXIMUM LOAN-TO-VALUE (LTV)7
Single Unit: up to 70% LTV / Multi-Unit (2+): up to 65% LTV
MAXIMUM LOAN-TO-COST (LTC)
COST IS PURCHASE PRICE AMOUNT8
Single Unit: up to 85% LTC / Multi-Unit (2+): up to 80% LTC
WHEN DO WE USE LTV VS LTC?
Generally, we use the lesser of LTV or LTC calculation
REHAB/CONSTRUCTION FINANCING11
Funding up to 100% construction budget up to % Approved LTV of Total Cost
Foreign Nationals
  • Not allowed from ineligible country list
  • Limited to: 85% LTC / 70% LTV max
PROPERTY TYPESNon-Owner Occupied:
  • Single Family Residences (SFR)
  • 2-4 unit properties
  • Multi-family 5-20 unit properties
  • Mixed-use
  • Detached or townhouse style condos 15

What Makes this Product Stand Out?

  • Loans designed for developers and investors alike
  • Option to include land acquisition financing10
  • Multiple draws available at borrower’s discretion11
Learn More | View PDF
All fields required.
Get Started

  • By submitting your phone number, you expressly consent to authorize Finance of America Commercial to contact you at the number you provide with information about our loan products and to continue your application. Calls may be made using automated dialing and other phone technology. You do not need to consent to receive calls as a condition of receiving services from us. Please call us at 800.227.8107 if you do not wish to submit this form. By completing this form, you agree to receive offers, promotions and other email messages from Finance of America Commercial. You may unsubscribe at any time.