RealWebFunds helps developers and investors find creative and competitive construction
loans throughout the United States. By presenting your loan request to local, regional and
national construction lenders we are able to find the best financing available for just about
any size and shape of project.
| Note: These are not terms of any specific lender. They represent terms that
we frequently see in the marketplace and are not to be relied on as a commitment to provide
any specific terms for any specific deal. |
| Maximum loan to cost: |
80% to 90% |
| Maximum loan to value: |
70% to 80% of completed value |
| Term: |
Generally 1 to 2 years with extensions as necessary |
| Amortization: |
Interest only |
| Typical Rates: |
Prime plus 0.5% to 2.0% or LIBOR plus 3.0% to 4.0%
|
| Prepayment terms: |
No prepayment penalty - but these loans often have a 1% exit fee if permanent loan is not done with same lender |
| Projects: |
All commercial property types can be financed. Developer and contractor
must have experience at this type and scale of development. |
| Recourse: |
Typically recourse. a few lenders offer non-recourse construction financing for larger loans. |
| Closing costs: |
Borrowers are responsible for all due diligence and closings costs (e.g. Appraisal, Phase 1 Environmental, site inspection, title, etc)
- Loans under $3M - costs range from $6,000 to $12,000
- For loans over $3M - costs can be $20,000 or more
Most construction lenders also charge a 1% loan fee.
|
