LOAN DETAILS
All-in-One Loans
Financing for horizontal lot development through vertical construction.
An ideal solution for Production Builders or Plat Development of 10 homes or more.
Multi-Family Loans
Financing for development of multi-family projects.
Construction
Financing for lot acquisition and vertical construction on new or previously acquired lots.
Whether you’re constructing single-family homes, condos, or townhomes, we’ve got a solution for you!
The WRAP
Warehouse Revolving Asset Pool
Revolving capital without additional origination fees for 24 months.
Bridge Loans
Purchase, refinance, or cash out loans with an existing structure.
Fix & Flips Loans
Financing for properties in need of renovation.
For the investor who needs quick cash and a timely close.
LOAN GUIDELINES
Project Types
- Single Family Residence
- Townhome/Rowhomes
- Multi-Family
- Condominiums
Loan Info
- All lending must be for investment purposes only (No personal residences)
- Lien Position – 1st Lien Deeds of Trust Only
- No rural areas
Loan Structure
- Loans Available up to 70% LTV and 90% LTC
- Loan Size: $250,000 – $65MM
- Prepayment Penalties = NONE!
Borrowing Requirements
- LLCs & Corporations (No Individuals)
- Minimum 680 credit score
- 640-679 considered with compensating factors
- Liquidity Requirements: 5% of total loan amount required in reserves
- Borrower must have at least 2 completed projects within the last 12 months
- Guaranties – Preferred Personal Guarantee
- Limited Guarantees on case by case basis
Definitions
Loan to Value = Loan Amount/Finished Value of Homes
Loan to Cost = Loan Amount (Land Cost + Hard Cost + Soft Cost)
**does not include financing fees**
Interest Reserve = Estimated and Financed at Closing
Origination Fee = Finance at Closing calculated on full loan amount
Loan to Value = Loan Amount/Finished Value of Homes
Loan to Cost = Loan Amount (Land Cost + Hard Cost + Soft Cost)
**does not include financing fees**
Interest Reserve = Estimated and Financed at Closing
Origination Fee = Finance at Closing calculated on full loan amount
Lending in 46 states! (not available in AR, LA, MS, or NY)
ALL-IN-ONE LOANS
LOAN GUIDELINES
Term
Horizontal = Up to 12 months for horizontal portion Vertical = Up to 12 months for vertical portion
Purpose
Purchase or refinance. Permits, preliminary plat approval and engineered stamped plans required
Property Type
Horizontal = Entitled land with zoning in place Vertical = Single Family, 2-4 Unit Properties Condo, Townhouses
Total Units
Single unit only
Loan Size
Minimum $2,500,000
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- Apartments and Development-only loans not allowed
- 1st Lien Position at all times
LTV
Horizontal = Up to 60% (based on finished lot value) Vertical = 65% (based on as-repaired value)
LTC
Horizontal = Deal Specific, target 80% LTC Vertical = Up to 85% (based on cost to build, including development costs)
Borrower Experience
Proven track record with a similar scope project
Funds and Closing
Cash out allowed if within LTV requirements
Payments
Interest Reserve or Monthly Payments
Borrower Requirements
- No individuals. Must be an LLC or Corporation
- Minimum 660 credit scores Reserve requirement:
- Reserve calculation is based upon 5% of the Commited Loan Amount
- Personal Guarantee preferred: Limited Guarantee on case-by-case basis
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Most recent two months bank statements
- > Each guarantor
- > Borrower (LLC or Corp)
- > Most recent two years tax returns
- > Each guarantor
- > Borrower (LLC or Corp)
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Engineered Construction Plans
- > Preliminary Construction Plans (if Engineered plans unavailable)
- > Breakdown of Costs Paid into Project
GET FUNDED
- > Borrower/Guarantor Resume – Highlight projects in last 24 months
- > Borrower Legal Filing Documents
- > Operating Agreement & Certificate of Formation (LLC)
- > Articles of Incorporation & Bylaws (Corporation)
- > Builder Resume – Website or short writeup
- > Preferred Insurance & Title/Escrow Agent
- > Builder Material Specifications (Spec Sheet)
- > Final Plat Approval from Jurisdiction (or Approval Letter)
- > Final Stamped Engineered Plans for Development work
- > Contract with Builder for Development Work
- > Preliminary Construction Plans (if Engineered plans unavailable)
- > Breakdown of Costs Paid into Project
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Engineered Construction Plans
*The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.
MULTI-FAMILY LOANS
LOAN GUIDELINES
Term
Up to 24 Month Term
Must have occupancy permit within term
Must have occupancy permit within term
Purpose
New Construction
Value Add
Stabilization/Bridge to Perm
Value Add
Stabilization/Bridge to Perm
Property Type
Market Rate Multifamily, Age Restricted
55+, Mixed-Use, Student Housing, Repositioning / Conversions
55+, Mixed-Use, Student Housing, Repositioning / Conversions
Total Units
Up to 250 Units (5 Stories Maximum)
Loan Size
Up to $37.0 MM
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- 1st Lien Position at all times
LTV
65% LTV
65% + LTV
65% + LTV
LTC
85% LTC Standard
90% LTC
90% LTC
DSC
Minimum 1.2
Borrower Experience
Proven track record with a similar scope project.
Borrower Financials
100% Acquisition Equity
5% of Loan Amount Liquidity Post Closing
10% of Loan Amount Liquidity for Max or
Outside of Standard Loan Underwriting
5% of Loan Amount Liquidity Post Closing
10% of Loan Amount Liquidity for Max or
Outside of Standard Loan Underwriting
Borrower Credit
FICO Minimum 700
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Operating Agreement & Articles of Incorporation
- > 2 Month Bank Statements – Each Guarantor & Business
- > Valid Credit Report on Guarantor(s)
- > Appraisal
- > Preliminary Title Report
- > Flood Certification
- > Purchase Contract on Property (if applicable)
* The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.
CONSTRUCTION LOANS
LOAN GUIDELINES
Term
Up to 18 months, per property (budget)
Purpose
Purchase, refinance, or cash-out refinance
Property Type
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
Total Units
No limit on units per loan
6-10 units require preapproval
6-10 units require preapproval
Loan Size
Minimum $250,000
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- Apartments and Developmentonly loans not allowed
- 1st Lien Position at all times
LTV
Up to 70% (based on as-improved value)
LTC
Up to 90% (based on cost to build)
Borrower Experience
- Must have built and sold the same number of units or more
- Example: Borrower applying for a 3-unit loan, Borrower must show 3 completed and sold projects in the last rolling 12 months
Funds and Closing
For purchase (if not already owned), and reimbursement of work in progress (if approved)
Payments
Interest Reserve or monthly payments
Borrower Requirements
- No individuals. Must be an LLC or Corporation
- Minimum 660 credit score, 620-659 considered with compensating factors
- Reserve requirement: Reserve calculation is based upon 5% of the Commited Loan Amount
- Personal Guarantee preferred: Limited Guarantee on case-by-case basis
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Most recent two months bank statements (Guarantors & Borrower)
- > Most recent two years tax returns
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Engineered Construction Plans
- > Breakdown of Costs Paid into Project
GET FUNDED
- > Signed Loan Application
- > > Most recent two months bank statements (Guarantors & Borrower)
- > Most recent two years tax returns
- > Builder Material Specifications (Spec Sheet)
- > Project Budget(s) on Builders Capital's Budget Template
- > Builder Resume – Website or short writeup
- > Preferred Insurance & Title/Escrow Agents
* The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.
THE WRAP
Warehouse: We hold the loan and service it throughout the term
Revovling: Available capital is reused as many times as you can use it
Asset: Acquisition, Development, Lot Bank, Vertical
Pool: Multiple loan products under one facility
LOAN GUIDELINES
Term
24-months with option to renew at 12 months
Purpose
Development, lot bank, or vertical construction
Property Type
- Development
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
Loan Size
$5,000,000 to $50,000,000
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- 1st Lien Position at all times
- Available capital is reused as many times as you can use it throughout the Revolving period.
- Convert Development to Vertical without additional credit qualifications.
- All loans to include a 15% Temporary Reserve Capacity for unplanned needs.
LTV
Up to 65%
LTC
Up to 85%
Borrower Experience
Proven track record with a similar scope project.
Funds and Closing
Cash out allowed if within LTV requirements
Closing costs
Closing costs
Payments
Monthly interest payments or interest reserve
Borrower Requirements
Minimum 700 credit score considered with compensating factors
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Most recent two months bank statements
- > Each guarantor
- > Borrower (LLC or Corp)
- > Most recent two years tax returns
- > Each guarantor
- > Borrower (LLC or Corp)
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Breakdown of Costs Paid into Project
GET FUNDED
- > Borrower Legal Filing Documents
- > Operating Agreement & Certificate of Formation (LLC)
- > Articles of Incorporation & Bylaws
- > Preferred Insurance Agent
- > Preferred Title/Escrow Agent
- > Additional project documents based upon project’s placed on the facility
* The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.
BRIDGE LOANS
LOAN GUIDELINES
Term
Up to 12 months
Purpose
Purchase, refinance, or cash-out refinance
Property Type
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
Loan Size
Minimum $250,000
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- Unentitled land not allowed
- 1st Lien Position at all times
LTV
Up to 70% "as is" value
LTC
N/A
Borrower Experience
Proven track record with a similar scope project.
Funds and Closing
Cash out allowed if within LTV requirements
Payments
Monthly interest payments required
Borrower Requirements
- No individuals. Must be an LLC or Corporation
- Minimum 660 credit score, 620-659 considered with compensating factors
- Reserve requirement: Reserve calculation is based upon 5% of the Commited Loan Amount
- Personal Guarantee preferred: Limited Guarantee on case-by-case basis
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Most recent two months bank statements
- > Each guarantor
- > Borrower (LLC or Corp)
- > Most recent two years tax returns
- > Each guarantor
- > Borrower (LLC or Corp)
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Breakdown of Costs Paid into Project
GET FUNDED
- > Borrower Legal Filing Documents
- > Operating Agreement & Certificate of Formation (LLC)
- > Articles of Incorporation & Bylaws
- > Preferred Insurance Agent
- > Preferred Title/Escrow Agent
* The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.
FIX & FLIP LOANS
LOAN GUIDELINES
Term
Up to 18 months
Purpose
Purchase or refinance with Renovation
Property Type
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
Total Units
Single unit only
Loan Size
Minimum $250,000
General Requirements
- All lending for investment purposes only
- Interest calculated on drawn balance
- Construction draws based on inspection report
- No rural properties
- Apartments and Development-only loans not allowed
- 1st Lien Position at all times
LTV
Up to 75%
LTC
Up to 95%
Borrower Experience
- Must have built and sold the same number
of units or more - Example: Borrower applying for a 3-unit loan, Borrower must show 3 completed and sold projects in the last rolling 12 months
Funds and Closing
For purchase (if not already owned), and reimbursement of work in progress (if approved)
Payments
Interest Reserve or monthly payments
Borrower Requirements
- No individuals. Must be an LLC or Corporation
- Minimum 660 credit score, 620-659 considered with compensating factors
- Reserve requirement: Reserve calculation is based upon 5% of the Commited Loan Amount
- Personal Guarantee preferred: Limited Guarantee on case-by-case basis
DOCUMENTATION REQUIREMENTS
BORROWER/GUARANTOR
PROJECT
GET STARTED
- > Signed Loan Application
- > Most recent two months bank statements
- > Each guarantor
- > Borrower (LLC or Corp)
- > Most recent two years tax returns
- > Each guarantor
- > Borrower (LLC or Corp)
- > Purchase & Sale Agreement w/ all Addendums (if purchase)
- > Scope of Work
- > Breakdown of Costs Paid into Project
GET FUNDED
- > Borrower Legal Filing Documents
- > Operating Agreement & Certificate of Formation (LLC)
- > Articles of Incorporation & Bylaws
- > Borrower/Guarantor Resume – Highlight projects in last 24 months
- > Builder Resume – Website or short writeup
- > Preferred Insurance & Title/Escrow Agents
- > Project Budget
* The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.