(From single custom houses up to $15 M projects)
While some major banks provide loan for the construction purposes, yet, it is rigorous process. As a result, majority of experts in building and construction industry prefer the private construction financing since it is Fast, Easy and Flexible. Rather than Bank’s income verification approach, private lenders grant this loan based on the end value of the subject project so-called equity lending. With construction loan, the money required to build the house is disburse to the homeowner as the construction progresses calling Progress Draw Mortgage. Generally speaking, the major banks have some limitation on the number of draws and draw schedules (money will be paid upon the completion of 35% , 60%, and 100%) while our lender are quite flexible in terms of advancing the loan and number of draws. The loan amount can go up to 75% of the end Value.