LOAN DETAILS
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
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
- 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
- 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
- > 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
- > 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
Must have occupancy permit within term
Value Add
Stabilization/Bridge to Perm
55+, Mixed-Use, Student Housing, Repositioning / Conversions
- 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
65% + LTV
90% LTC
5% of Loan Amount Liquidity Post Closing
10% of Loan Amount Liquidity for Max or
Outside of Standard Loan Underwriting
DOCUMENTATION REQUIREMENTS
- > 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
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
6-10 units require preapproval
- 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
- 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
- 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
- > 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
- > 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
- Development
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
- 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.
Closing costs
DOCUMENTATION REQUIREMENTS
- > 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
- > 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
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
- 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
- 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
- > 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
- > 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
- Single Family
- Condo
- 2-4 Unit Properties
- Townhouses
- 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
- 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
- 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
- > 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
- > 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.