Construction Funding

Program is for experienced builders/investors, who have built as a PRINCIPAL investor previously (Exceptions can be made for VERY experienced GC’s)

  • For Investment properties ONLY (“Fix & Flips”)
  • Up to 60% of land cost
  • Up to 100% of construction cost
  • Not to exceed 60% of the after construction value
  • Not to exceed 80% of the total project cost
  • Loan Size: $75,000 – $2,500,000
  • You will be required to fund the 1st phase of work (10%-20% of project cost)
  • There is a minimum equity requirement of $20,000.00, with an equal to or greater than average daily balance (ADB) as reflected in your business bank account prior to and at the time of closing. 
  • Monthly interest-only payments between 10%-12%
  • Zero Point Pricing available **
  • 12-18 Month Term (Extensions available at a cost, in 3 month increments)

All closing costs and fees are paid at the time of closing. They include and/or may not be limited to as follows:

  • $500 legal fee*
  • $995 processing fee* (May be up to $1595 for larger projects)
  • Appraisal fee (Paid directly to the appraiser at the time of the site inspection-Generally $450, but could be higher for larger development projects)*
  • $300 escrow fee (Please note that on construction budgets over $100,000, you DO NOT pay interest on the funds until you draw them down, this is a HUGE benefit to builders that almost no other private lender provides)
  • $175 draw fee- paid upfront per the number of anticipated draws. Should your draw schedule change and you require less draws, the fee for unused draws will be credited to your payoff statement. Please note that our draw process works in arrears, and you will be required to fund the 1st phase of work, and will receive the 1st draw after the 1st inspection. (In some cases an exception may be made for a small 1st draw advance. This is at the underwriters discretion)
  • $50 wire transfer fee
  • $30 credit check fee
  • Origination fees apply to each of our loans, and vary between  0-2%.

*The only fees paid before closing are the appraisal, legal, and processing fees

Loan Parameters for Fix & Flip:

  • Loan Size: $75,000 – $2,500,000
  • Loan Term: 12 months (Up to 18 on exception basis )
  • Loan Structure: Interest Only, Balloon Payment at Maturity, NO PREPAYMENT PENALTY
  • Rate Range: 8%-11%
  • Point Range: 0%-2%
  • Zero Point Pricing available**
  • 75%-80% of Purchase Price
  • 100% of Rehab Cost
  • Up to 75% ARV
  • $20K MINIMUM “SKIN IN THE DEAL” FROM THE BORROWER
  • 600 Minimum Credit Score

High Leverage Fix & Flip Funding:
(Available to investors that have done 3+ flips in the last 24 months)

  • Loan Size: $75,000 – $5,000,000
  • Loan Term: 12 months Loan Structure: Interest Only, Balloon Payment at Maturity, NO PREPAYMENT PENALTY
  • Rate Range: 8%-11%
  • Point Range: 0%-2%
  • Zero Point Pricing available**
  • Up to 90% of Purchase Price
  • 100% of Rehab Cost
  • Up to 75% ARV or 90-95% of Total Project Cost
  • 600 Minimum Credit Score
  • None of the following in the last (4) Years: Bankruptcy, Foreclosure, Short Sales, or Felonies

 Closing Costs:

  • Appraisal fee: $450
  • Legal Fee: $500
  • Processing Fee: $500
  • Escrow Fee: $300
  • Wire Fee: $50
  • Credit Check Fee: $30  (Per Guarantor)
  • Draw Fee: $175 per draw (Paid in advance at closing, and refunded if less draws are dispersed than initially anticipated)

**Zero Point Pricing

Borrowers can request Zero Point Pricing, as opposed to regular pricing. ABL will roll the origination points into the interest rate. There is a 1% premium added to the rate for this pricing. This pricing is available on ALL DEALS,

Example: Regular pricing 10% Interest and 2% Origination Fee = 13% Interest and 0% Origination Fee

Property Types and Programs:

  • Single Family
  • Multi Family 2-4 Families
  • Multi Family 5+ Units
  • Mixed Use
  • Land (associated with a new build)
  • Property Purchase & Rehabilitation
  • Purchase Only
  • Property Rehabilitation Only
  • Land Purchase and Property New Construction
  • Property New Construction Only
  • Loan Refinance Only
  • Loan Refinance and Property Rehabilitation
  • Loan Refinance and Cash Out
  • Cash Out and Property Rehabilitation
  • Cash Out Only

GET PRE-APPROVED RIGHT NOW!
Invest 5 minutes of your time and call us @ 615-669-0298.
We offer the fastest pre-approval in the industry.