Construction Loans

Over the past few years, conventional lenders have all but stopped providing speculative construction loans to builders and investors. While the appetite of traditional lenders for this type of loan fluctuates with the market, private lenders like Direct Investors have long provided financing. If you are considering this type of loan option, there are a few factors to keep in mind:

  • Location is important. To be approved for this type of loan, the location of the project is very important.
  • The lot lien may be included in the loan, assuming the lender has first position. Whether or not you may finance some or all of the lot cost into your loan depends on many factors, including your experience level.
  • Depending on your experience, the down payment requirement may be 30% to 35%.
Construction Loans

Hard Money Construction Loans

Direct Investors is a trusted lender for construction loans. We lend for residential and commercial based loans with lending at any stage of the entitlement process. Unlike traditional lenders, we do not require a credit check, as we perform lending based on the value of the asset and the borrower's experience level, not the borrower's credit score. We specialize in funding construction loans very quickly with the most competitive rates.

If you are an experienced builder or borrower preparing to build a new home or a multi-family property from the ground up, we can help. Due to the complexity of the construction process, we make loans for extensive rehab or new home building to experienced investors or borrowers, with attention given to the project budget and plans, along with the qualifications and experience of the general contractor.

Hard Money Construction Loans

Construction Loan Requirements

To qualify for our hard money construction loan program, we require that the following conditions be met:

  • Plans and specifications must be delivered to Direct Investors that represent a final set of plans for the project.
  • Copies of the construction contract, engineer's contract and architect's contract be delivered.
  • Contractors, engineers and architects must provide service as requested or necessary to complete the project on time and within budget.
  • Ground up construction plans and the use of the project comply with laws and regulations.
  • Permits, certificates and authorization for the project must be obtained.
  • The borrower must not have entered into a contract that could cause a lien against the project, with the exception of parties who have been paid or who have delivered a lien waiver or subordination.
Hard Money Construction

We do not limit the number of properties, which means you can leverage a single project or an entire portfolio. We also offer customized loan programs to suit the needs of your business. We lend up to 60% loan-to-value for a 12-month construction loan.

As construction is completed on the project, borrowers may submit a draw request for additional funds, which may be made directly to sub-contractors or suppliers or the borrower.

If you are interested in a hard money construction loan, get in touch with a representative from Direct Investors today. We will help you create a customized loan program, because we realize that every investor has his or her own method of doing business. Count on us for fast loan funding and competitive rates to help you grow and expand your business.

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Real Estate Construction Loan