New Construction Loans
Build homes and wealth with loan programs designed by developers, for developers.
Loans for Developers
- Property Type: Residential (1-4 Units)
- Rates Starting At: 11%*
- Loan Amount: $75K to $2MM
- Max LTC: 75%*
- Max LTV of ARV: 65%*
- Loan Terms: 12, 18, & 24 Months
Funding provided after plans are approved and permits are issued.
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What’s the Difference Between a New Construction Loan and a Fix-and-Flip Loan?
Our new construction loans support ground up builds, whether they are site built or modular, hence new construction loans. Our new fix-and-flip loans are strictly for existing properties that are being rehabilitated.
Are There Different Types of New Construction Loans?
Absolutely. What makes a new construction loan differ from others is the building type, use type, ownership structure, and unit count. We support most new construction.
Does Turning Point Lending Make Loans on all the Different Types of New Construction?
No. Our new construction loan program does not support subdivisions, 5+ family dwellings, mixed use, or commercial. Our bread and butter is 1-4 family properties.
At What Stage Does Turning Point Lending Fund Their New Construction Loans?
We fund these deals once the property is shovel ready. That means that if subdivision was required to create a building lot, it is complete and recorded and has a tax ID parcel # assigned to it. In addition, all building permits need to be approved and issued.
Will Turning Point Lending Do a New Construction Loan on a Tear Down Property?
Absolutely. But just like a standard new construction loan, we do not commit to funding until all required permits are approved and issued. This obviously includes a demolition permit.
How Does Your New Construction Loan Program Work?
Very similar to our new fix-and-flip programs in that we establish a draw schedule and disburse funds as those draw schedule line items are completed. Once the property is 100% complete and has its U&O issued, the remaining funds left in the hold back reserve fund are released to the borrower.
Will Turning Point finance a new construction loan for someone doing his first new construction project?
No. Our new construction loans are strictly for borrowers with new construction experience.
Are New Construction Loans expensive?
On the contrary, a new construction loan is simply one of your soft or indirect costs associated with your real estate investment. In the grand scheme of things, a well-managed new construction project wherein you go through disposition in 18 months or less should be a reasonable expense for the profit that is waiting for you.
How Long Does it Take for My New construction Loan to get approved?
At Turning Point Lending, we can approve your new construction loan in as much time as it takes your title policy to be approved. Get clear title and get your new construction loan.
Are Your New construction Loan Terms Flexible?
We have numerous programs and terms, and we can structure your new construction loans in a myriad of ways. In addition, unlike a fix-and-flip loan that has a 12-month loan term, we offer 18-month terms on our new construction loans. We’re confident that our flexible loan terms will translate into you giving us your new construction loan business.
These types of projects should only be undertaken by experienced real estate investors or developers. Unlike a fix-and-flip project, a new construction project has much greater municipal oversight. This condition often confounds inexperienced developers. Because we only offer 18-month terms, before taking out a new construction loan, you should be certain that you can go through disposition in 18 months or less. And because your draw schedule is part of your new construction loan package, we need to ensure that it is completed appropriate so that you not only have sufficient funding to finish the project, but also so that your draw funds flow back appropriately. In conclusion, we’re here with our new construction loan program, so let’s all make money together.