The most FAQs I get about New Construction loans:

❓ Can I get 100% funding?

▶️ Yes!! It’s possible if the purchase price+rehab is less than 70% ARV

❓ Does this cover horizontal development or just vertical construction?

▶️ Horizontal development MAY be covered, it’s a possibility

❓ Can I build tiny homes?

▶️ No. Most lenders don’t fund tiny or container homes.

❓ Can I build 4-10 home communities?

▶️ Yes, definitely a possibility if you have ample experience.

❓ How does the draw process work?

▶️ You request draws (reimbursements) for the rehab done whenever you would like.

❓ Do I have to own the land before getting a construction loan?

▶️ Not at all. These loans can fund the purchase of the land. If you do own the lot you may be able to use that equity to pay for closing costs!

❓ I don’t have new construction experience. Do I need a GC in my LLC?

▶️ NOPE! If you have flip experience you can get away with just a contract with a licensed GC

What questions do you still have?

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The most FAQs I get about New Construction loans:

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