TAILORED GROUND-UP CONSTRUCTION LOANS: YOUR BLUEPRINT TO BUILDING SUCCESS

WHAT IS A GROUND-UP CONSTRUCTION LOANS?

Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.

At Alto Capital, we tailor our programs to your experience and your project.

WHAT IS A GROUND-UP CONSTRUCTION LOANS?

Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.

At Alto Capital, we tailor our programs to your experience and your project.

GROUND UP CONSTRUCTION TERMS

PROPERTY TYPE

Homes with 1-4 Units ( 5 units and above on a case by case basis)

Loan Amount

UP TO US$ 5.000.000 (Loan amount above US $5M subject to longer approval time and additional requirements)

TYPE OF LOAN

Interest only short term loan with a balloon payment at maturity.

MAXIMUM LOAN TO COST

Up to 85%

MAXIMUM LOAN TO ARV

70%

MAXIMUM LOAN TO VALUE

Up to 75%

BASE RATE

STARTING RATE 8.75% (Interest only payments on disbursed amount)

MINIMUM FICO SCORE

700

PREPAYMENT PENALTIES

NO PREPAYMENT PENALTIES

FOREIGN NATIONALS ACCEPTED

+ 0.25 to base rate

EASY DRAW PROCESS

REQUIREMENTS

  • 3 months of bank statements
  • ID, passport, (US visa for foreign nationals)
  • Entity Documents (LLC or Corp), EIN & OP Agreement
  • Rehab budget (if applicable)
  • 6 months liquidity/reserves
  • Non-owner occupancy certification
  • SSN for credit report and background check
  • Evidence of insurance (full replacement + 500K liability) & builder’s risk insurance (if applicable)
  • Minimum Fico score of 700
  • Signed loan application.
  • Purchase Contract (if applicable.)
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FAQ

Do I need renovation or construction experience for a "Fix and Flip" loan?

Yes, it’s vital to have proven experience with a minimum of three projects.

Can I apply for a "Fix and Flip" loan for commercial properties, or is it exclusive to residential ones?

At Alto Capital, “Fix and Flip” loans are exclusively available for residential properties.

What happens if I cannot sell the property after renovation or wish to retain it?

Suppose you face challenges in securing a quick sale or decide to retain the property. In that case, you can transition to a DSCR loan, a long-term financing solution with more favorable terms and extended durations.

How long does a typical "Fix and Flip" project last?

The duration varies based on the property’s condition and the extent of required renovations. However, the goal is to sell the refurbished property as swiftly as possible, typically within 6 months to a year.

How do you manage disbursements during the various construction stages of a "Fix and Flip" loan?

Disbursements are made after the completion of the work. An assigned inspector will evaluate the property, and upon their approval, the agreed-upon amount will be disbursed.

Are there any penalties for early payments or settling the "Fix and Flip" loan ahead of schedule?

No. At Alto Capital, we don’t levy any penalties for early payments or for settling the loan before its due date.