CONSTRUCTION LOAN MATRIX
Program overview, qualification levels, leverage parameters and underwriting adjustments
PROGRAM OVERVIEW
| Loan Amount | Up to $4,000,000 | Interest Rate | 7.99% – 10.99%* |
| Pay Rate | 0.00% — no monthly payments | Points | 2%; Levels 9–10: 3% — paid at maturity |
| Recourse | Limited recourse possible | Term | Initial 10–18 months + extension option |
| Other | Request a term sheet for greater detail | Credit Line | Separate terms apply |
QUALIFICATION & LOAN SIZE
| Level | Sold Homes Last 10 Years |
Repayments Last 5 Years |
Maximum LTC 100% land sub* |
Maximum LTV | Budget Administration |
|---|---|---|---|---|---|
| 1 | 100+ | 25+ | 90% | 75% | May directly pay all items |
| 2 | 50+ | 15+ | 90% | 72% | May directly pay all items |
| 3 | 40+ | 10+ | 88% | 70% | May directly pay all items |
| 4 | 20+ | 5+ | 86% | 70% | May directly pay all items |
| 5 | 20+ | 2+ | 84% | 70% | May directly pay all items |
| 6 | 20+ | 0 | 82% | 68% | May directly pay all items |
| 7 | 10+ | 2+ | 82% | 67% | May directly pay all items |
| 8 | 8+ | 0 | 80% | 65% | May directly pay 5 budget items |
| 9 | 5+ | 0 | 75% | 60% | May directly pay 5 budget items |
| 10 | 2+ | 0 | 70% | 55% | May directly pay 5 budget items |
LOAN SIZE ADJUSTMENTS
| Category | Factor | Negative Adjustment | Positive Adjustment |
|---|---|---|---|
| FINANCIALS | Credit Score | Below 700 | 740 or higher |
| Bank account, 2-month balance | Below $75,000 | $250,000 or more | |
| Net worth excl. primary residence | Below $500,000 | $3,500,000 or more | |
| MARKET | Population within 3 miles | Below 25,000 and/or decreases | 50,000+ and strong growth |
| Affordability | Low — overbuilt / limited buyers | Excellent | |
| Presold or refinance in place | N/A | Yes | |
| Issues flagged in valuation | Yes | N/A | |
| HISTORY | Litigation with financial institution — past 10 years | Yes | N/A |
| Foreclosure(s) — past 10 years | Yes | N/A | |
| Bankruptcy issue — past 10 years | Yes | N/A | |
| Delinquency with builder supplier | Yes | N/A | |
| Outstanding real estate liens | Yes | N/A | |
| Real estate loan delinquency | Yes | N/A | |
| Performance issue on prior loan | Yes | N/A |
* Interest Rate: 7.99% first month, increasing 0.5% monthly up to 9.99% maximum for $2+ million loans; otherwise up to 10.99% maximum.
Maximum LTC: 100% may apply to land subdivision for Levels 1–5 and 7.
Maximum LTV: Loans above applicable per-unit thresholds may have lower LTV. If loan per unit exceeds $2 million, maximum LTV is 70%.
Disclaimer: Information is not comprehensive, may not apply in all states, and is subject to change. This does not constitute a lending agreement. All loans are subject to credit approval. Source document last updated January 2026.
Maximum LTC: 100% may apply to land subdivision for Levels 1–5 and 7.
Maximum LTV: Loans above applicable per-unit thresholds may have lower LTV. If loan per unit exceeds $2 million, maximum LTV is 70%.
Disclaimer: Information is not comprehensive, may not apply in all states, and is subject to change. This does not constitute a lending agreement. All loans are subject to credit approval. Source document last updated January 2026.
Frequently Asked Questions
What is the maximum loan amount available for construction loans?
The maximum loan amount available for construction loans is up to $4,000,000.
What are the interest rates for construction loans?
The interest rates for construction loans range from 7.99% to 10.99%.
Is there a pay rate for construction loans?
There is no monthly pay rate, as it is 0.00% — no monthly payments.
What is the term length for construction loans?
The initial term for construction loans is 10–18 months, with an extension option available.
What qualifications are needed for different loan sizes?
Qualifications vary by level, including sold homes in the last 10 years and repayments in the last 5 years, with maximum LTC and LTV percentages.
Are there adjustments based on financial factors?
Yes, there are negative and positive adjustments based on factors like credit score and bank account balance.