New Construction Loans For Investors
Optimus Capital provides new construction loans for real estate investors. For our real estate investor clients, we provide a variety of land and new construction loans.
Approaching Our 10 Year Anniversary
With our extensive experience, Optimus Capital has developed a deep understanding of the real estate market and the unique needs of borrowers. We have honed their ability to assess the value and potential of properties, enabling them to make quick and informed lending decisions. This expertise allows Optimus Capital to fund loans in a matter of days, providing borrowers with the swift financing they need to seize opportunities or overcome financial hurdles.
What Is A Construction Loan?
Construction loans are a type of short-term loan that can be used to fund single family new construction or renovation projects. They’re utilized to cover the costs of constructing a new single family home or renovating an existing one.
Construction loans are only valid for the project duration, and users only borrow as much as they require. The home builder or developer receives these loans through draws, which is part of the loan process.
As various aspects of the project, such as the foundation or the frame, are completed, the drawings are updated.
The main benefit of construction loans is that they allow home builders, developers and real estate investors to build a new property by accessing funding and leveraging their cash reserves.
All of our new construction loans are for investment properties that are non owner occupied by the borrower.
All of our new construction loans are for investment properties that are non owner occupied by the borrower.
Investment property construction loans can be utilized for a variety of projects, but they virtually always allow a developer or home builder to build the property by leveraging their cash reserves. This is a suitable financing option for anyone interested in a new construction, building completion loans or major renovations projects.
Owner-Builder Construction Loan
Owner-Builder Construction Loan
If you’re a licensed builder, you can apply for construction financing as an owner-builder. Optimus Capital issues loans to homebuilders who plan to sell the investment property after completion.
Construction To Permanent Loan
This is the ideal if the home builder or developer would like to build the single family home and then refinance into a long term rental loan. Optimus Capital does this for investor clients who have plans to turn the new single family home into a rental and keep the property as a non owner occupied property.
This type of loan will give you the capital needed to build a single investment property. This type of loan is not usually offered by banks and traditional lenders.
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Renovation Loan
This type of loan usually falls under the Fix and Flip Loans and sometimes a Bridge Loan as a refinance.
Completion Construction Loan
In the case these are specialized for investor clients who may have already started building a single family property (SFR) and may need to refinance their current debt or access more capital in order to complete the project.
How Does A New Construction Loan Differ From Other Types Of Loans?
Due to the differences in what a construction loan and a home loan can be used for, the approval requirements for each will be slightly different. A construction loan is used to construct new structures or remodel existing ones, whereas a home loan is simply a mortgage.
Both types of funding will necessitate a credit check and other financial information. Still, a construction loan will also necessitate the approval of the project plans prior to the loan being provided.
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How To Qualify For A New Construction Loan
Borrowers
Borrowers must meet many financial conditions in addition to having their project designs approved to qualify for a construction loan.
Lenders will usually start by looking at your debt-to-income ratio and credit score. While your lender’s particular requirements will vary, many will want a credit score of 650 or above.
When applying for a construction loan, borrowers must also have a down payment, between 20% and 30%.
What To Look For In a Lender
When looking for a lender, make sure to shop around; there are a variety of possibilities for acquiring a construction loan, each with its own set of conditions
You must also submit the project’s construction plans to gain final approval for a construction or renovation loan. Lenders will want to examine the property’s exact drawings and a team of certified builders working on the project.
It’s vital to understand that, while completed blueprints are required for final loan approval, you can get preapproved for a construction loan before purchasing a home.
Construction Loans
Construction loans are only available for the duration of a project. Home loans, on the other hand, are granted for a specific amount of time until they are paid off.
Borrowers who rely on construction loans are more likely to refinance their property after the project is completed and take out a more standard loan. Homeowners will undergo a property inspection and appraisal to do so.
The type of project is what distinguishes construction loans from renovation loans. Construction loans are used to fund the construction of new properties with well-defined project plans.
Those that take out construction loans will often switch to a standard mortgage once the project is completed. Renovation loans for investors, on the other hand, are utilized to buy fixer-uppers or repair existing houses.
These loans can be used for both cosmetic and structural improvements, like as insulation or kitchen upgrades.
New Construction Loan FAQs
How does Optimus Capital structure ground up construction loans for investors?
Optimus Capital offers new construction loans with staged funding, covering land acquisition and building costs. We structure repayment around construction timelines, with flexible terms and fast closings.
Can I get a construction loan without traditional income documentation?
Yes, Optimus Capital offers asset-based construction loans that do not require traditional income verification. Approval is based on project viability, land value, and exit strategy.
Does Optimus Capital fund both residential and small commercial construction projects?
Yes, Optimus Capital provides new construction loans for residential and small commercial real estate, including single-family homes, duplexes, and mixed-use projects.
Are there flexible new construction loan options in Sacramento for small developers?
Optimus Capital offers flexible construction loans in Sacramento, California, with fast approvals and low rates that support small-scale residential or infill development projects.
What are my options for construction loans in Miami with quick funding?
Optimus Capital provides fast-closing ground up construction loans in Miami, Florida, tailored for builders who need timely capital to meet aggressive project schedules.
Can I get a new construction loan in Fort Worth without waiting on bank underwriting?
Yes, Optimus Capital serves Fort Worth, Texas, with private construction loans that avoid lengthy bank approvals. Our fast process helps builders break ground faster.
Who offers fast construction loans for new builds in Jacksonville?
Optimus Capital offers construction loans in Jacksonville, Florida, with quick closings and draw schedules that keep your project on time from land purchase to final inspection.
Are there new construction lenders in Cleveland with investor-friendly terms?
Optimus Capital serves Cleveland, Ohio, with ground up construction loans that are designed for real estate investors, offering flexible terms and fast funding.
Where can I find construction loans in Los Angeles with minimal delays?
Optimus Capital offers construction financing in Los Angeles, California, structured to reduce delays with streamlined underwriting and timely draw releases.
Who provides ground up construction loans in San Diego with low rates?
Optimus Capital provides competitively priced construction loans in San Diego, California, helping builders start and complete projects without rate surprises or delays.
What are the best options for construction loans in Colorado for residential projects?
Optimus Capital offers new construction loans in Colorado for residential investors, combining fast draw schedules with low rates to keep your project moving.
Is there a lender in Georgia offering construction loans without large upfront fees?
Yes, Optimus Capital offers construction loans throughout Georgia with investor-friendly terms and no large upfront fees, ideal for first-time or experienced developers.
Are there construction loans available in Washington state for infill housing?
Optimus Capital supports infill housing projects in Washington state with new construction loans that close quickly and fund in stages to match construction milestones.
Who funds new build projects in Austin without excessive delays?
Optimus Capital offers construction loans in Austin, Texas, with efficient approvals and a staged funding process, helping builders keep projects on schedule.
Can I get a ground up construction loan in Hawaii for a residential duplex?
Yes, Optimus Capital funds residential duplex construction in Hawaii with loans that cover land, materials, and labor, offering competitive terms and reliable draws.
Does Optimus Capital work with builders who are also first-time developers?
Yes, Optimus Capital provides construction loans to first-time developers who have a solid plan, a licensed contractor, and a feasible project timeline.
What makes Optimus Capital construction loans suitable for real estate investors?
Our construction loans are built for investors, offering fast closings, staged draws, flexible terms, and approval based on project performance, not personal income.
Can I use a construction loan from Optimus Capital to build and hold as a rental?
Yes, Optimus Capital allows you to transition from a construction loan to a rental loan (DSCR) once the project is complete, making it easy to build and hold.
