Ground Up Loans
Discover Our Personalized Approach to Ground-Up Construction Financing!
At NewVerse Capital we take pride in being a trusted direct lender, specializing in ground-up construction financing and comprehensive real estate investment solutions. Our goal is to empower real estate investors and developers with the financial resources needed to bring their development projects to life. We understand the intricacies of the construction process and offer tailored financing options designed to facilitate the successful execution of new builds. By leveraging our industry knowledge and commitment to client success, we ensure that every aspect of your ground-up project is supported with the right financing to help you achieve your vision and maximize your investment potential.
Our financing options are available for the construction of single-family residences, multi-family units, townhomes, and commercial properties. Whether you’re building a new luxury home, a multi-unit residential complex, or a commercial space, our team is equipped to provide the funding needed to turn your vision into reality. We understand the unique requirements of each property type, and we work closely with our clients to customize solutions that align with their specific project goals and timelines.
Key Features of NewVerse Capital’s Ground Up Loan Program
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Maximum Loan-to-Cost (LTC):
- Up to 75% of the lower value between land or purchase price, or 60% if the property is unpermitted, plus 100% of construction costs.
- Maximum LTC for total project costs is 85%.
- LTC Catch-Up Draw: The initial advance can be raised to 75% upon approval of required plans or permits post-closing.
Maximum Loan-to-After Repair Value (ARV):
- Up to 70%.
Recourse:
- Full recourse required.
Reserves/Escrows:
- Interest Reserve: A minimum of 1 month required.
Experience Requirements:
- Previous real estate experience is required for 1-2 ground-up projects.
- General Contractors (GCs) with experience are required if permits are tied to ground-up projects.
- Guarantors with no prior experience may be considered on a case-by-case basis.
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Loan Amount:
- Minimum: $50,000
- Maximum: $3,500,000
Term Length:
- Standard term: 12 months
- Up to 18 months at the lender’s discretion
Property Count:
- Minimum: 1
- Maximum: 2
Eligible Property Types:
- Non-owner occupied 1-4 unit residential properties
- Townhomes
- Condominiums
Ineligible Property Types:
- Mixed-use properties
- 5+ unit multifamily properties
- Condotels
- Co-ops / Tenancy-in-Common (TICs)
- Commercial properties
- Log homes
- Properties subject to oil and/or gas leases
- Operating farms, ranches, or orchards
- Vacation or seasonal rentals
- Rural properties
