Home Construction and Renovation Loans from $1M – $10M
We offer Bridge Financing for Residential Properties for New Home Construction, Rehabs, and Renovations.
Getting an Owner Builder Construction Loan
Basic Residential Construction Loan Terms
- $1M – $10M loan amounts
- Starting rate is 4%-4.50%
- 6-12 month term
- 65% maximum combined loan-to-value (LTV) on broken construction projects
- 75% maximum loan-to-value (LTV based upon future value) on ground-up construction projects and 70% loan-to-cost (LTC).
- Non owner occupied residential properties
- Due to regulatory constraints, no roll-over to perm financing is available at this time.
- Each loan is priced case-by-case. Loan to values/cost express a maximum and are subject to review.
New Home Construction Loans
When you’d prefer to build your dream home on an empty plot of land rather than find one that’s already built, chances are you’ll need a residential construction loan to make your vision a reality. After you’ve hired an architect to draw up plans and a general contractor to break ground and oversee the development of your new home, you’ll need to secure financing by getting in touch with our Construction Lending Division at 310-824-6420.
Many of the best or unique loan products we source are not marketed to the general public. Please take a few minutes and fill out our loan application to begin the process.
Renovation and Rehab Loans
Cent Banc also specializes in providing bridge loans for the renovation or rehabilitation of residential properties. These loans cover the costs of adding significant improvements to your home, such as a major renovation to add new rooms, floor levels, balconies, a swimming pool, etc. Although financing large makeovers has traditionally been difficult to secure, we’ve developed a steady network of residential construction lenders with large appetites for home improvement projects.
What is needed to qualify for a residential construction loan?
Typically, Cent Banc asks for the following items when qualifying you for a home construction loan:
- Basic income, debt, and asset information.
- A signed construction or purchase contract with your builder, developer, or general contractor.
- A detailed construction budget from your builder, developer, or general contractor, including hard and soft costs.
- Background, bio, or recent similar projects completed for architect, contractor, and construction manager (if applicable).
- Copy of approved building plans and permits (if available).
- Project schedule or timeline showing key points from beginning to completion of project.
How does a home construction loan work?
Whether you have a new home construction loan or a rehab / renovation loan, these financing products work differently than your standard mortgage. Construction lenders disburse funds based on when project milestones are completed (which includes an initial disbursement to begin construction on your home), rather than issuing the entire loan amount at once. For example, a lender may specify that a set amount of construction funds, or a “draw”, will be released once the contractor pours the foundation, and another draw will occur once the framing is complete, etc. Typically, a borrower who has either type of residential construction loan pays only interest and no principal during the actual construction period. The borrower does pay for closing costs for the loan, which usually has a six-month to one-year term.
Here’s an in-depth but simplified look at the entire home construction loan process.
(Broken Projects)
(New Construction)
(New Construction)