Myers Capital is proud to be a dependable, supportive, and consultative partner for real estate investors. We help investors not only purchase existing properties and accomplish other key real estate goals, but build new investment properties from the ground up as well.
What is a ground up construction loan
Make the perfect project for the housing market you target a reality with a ground-up construction loan.
This financing option offers a single, short-term loan for all phases of new construction, with funding provided in stages as construction progresses. That makes it easier to bring your project to completion and put it on the market.
Costs covered by ground-up construction loans include:
- Purchasing the land, if needed.
- Project fees, such as permitting fees.
- Design costs.
- Materials.
- Labor.
BENEFITS OF GROUND UP CONSTRUCTION LOANS
What advantages do ground-up construction loans offer?
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Tap into the local market & Boost ROI
Simplified financing process
No personal income verification
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On-time closings
Fast, reliable construction draws
Seamless transition to long-term financing
THE CONSTRUCTION DRAW PROCESS EXPLAINED
Funds for ground-up construction loans are generally disbursed as draws as the project reaches key milestones, not as a lump sum.
As each milestone is reached, the contractor requests a draw. Then, the investor reaches out to the lender. Once the lender verifies that the requested funds and completed work are a match, the lender disburses the funds, and the investor makes their payments.
With Myers Capital as your financer, you can count on fast and reliable construction draws to keep your project on track.
Eligible Property Types for Ground-Up Construction Loans
Myers Capital offers ground-up construction loans for single-family homes and multi-family (5 units or more) properties.
Qualifying for a Construction Loan
In general, construction loans have different qualifications than mortgages. They usually don’t involve collateral from the borrower, nor do they require W-2s, tax returns, or pay stubs.
What do lenders like Myers Capital look for when approving borrowers?
- Strong credit history.
- Stable finances.
- Absence of major financial obligations relative to total assets.
- Established relationship and contract with a licensed, experienced, and qualified builder
- In-depth information about the project itself, including timelines, cost and pricing, the construction plans, and more.
Is a Construction Loan a Mortgage?
No, this type of loan is not a mortgage. While construction loans cover land and the construction process, they are not long-term financing. Funding is generally in stages (and not as a lump sum), often covering a period of 6-24 months.
However, some construction loans are designed to automatically convert to mortgages at the end of their terms. Real estate investors can also pay off the loan in full as its term expires or separately secure a long-term mortgage loan for the property.
Our experienced and capable team can help you find both the right construction loan for your needs and effective options for moving forward with long-term financing.
Choose Myers Capital for Your Next Construction Loan
At Myers Capital, our goal is always to bring you competitive terms and conditions, knowledgeable support, and informed guidance.
Our team has deep experience with construction loans, which we leverage for your benefit as a real estate investor. We can help you build a custom solution that aligns with your needs while providing fast approvals, a streamlined application process, and support throughout the process.
Start Your Construction Loan Application Today