Loan Program
Fast, flexible hard money financing for construction loan opportunities. We structure terms for speed, clarity, and execution.
Construction loans provide specialized financing for building new structures from the ground up, representing distinct lending products that address the unique risks and capital deployment patterns of construction projects. Unlike traditional mortgages that fund completed properties, construction loans release capital in stages aligned with construction progress, requiring sophisticated project management and risk assessment capabilities from lenders. In Miami's growing market, construction financing enables developers and owner-builders to create new housing supply and commercial space.
The construction lending landscape encompasses diverse project types including single-family custom homes, speculative production homes, multi-family apartment buildings, commercial developments, and mixed-use projects. Each project type presents distinct risk profiles, cash flow patterns, and financing requirements that shape appropriate loan structures. Successful construction lending requires deep understanding of construction processes, contractor management, and market absorption dynamics.
Miami's construction market reflects the region's growth trajectory and development constraints. Limited available land in desirable areas, complex zoning and environmental regulations, and skilled labor availability challenges affect project timelines and costs. Construction financing must accommodate these market realities while providing appropriate controls to ensure project completion and loan repayment.
Borrowers pursue construction financing for various strategic objectives. Owner-builders construct custom homes reflecting personal preferences and lifestyle requirements. Developers build speculative homes for sale in strong housing markets. Investors create rental properties for long-term portfolio holdings. Each objective requires tailored financing structures matching project economics and exit strategies.
Construction loans support the complete building process from land preparation through final completion. Single-family custom home construction enables individuals and families to build residences tailored to specific needs and preferences. These loans fund acquisition of building lots, construction costs, and soft costs including architectural design and permitting, with interest reserves covering carrying costs during construction.
Speculative home construction financing supports builders constructing homes for sale without pre-arranged buyers. These loans carry higher risk than custom construction due to market absorption uncertainty, requiring larger equity contributions and more stringent underwriting. Successful speculative builders maintain strong presale programs or operate in markets with demonstrated demand for new construction.
Multi-family construction loans enable development of apartment buildings and condominium projects. These larger-scale financings involve extended timelines, multiple contractors, and complex cash flow management. Loan structures typically include interest reserves, contingency reserves, and milestone-based funding releases coordinated with construction progress and pre-leasing achievements.
Commercial construction financing supports office buildings, retail centers, industrial facilities, and mixed-use developments. These projects often involve pre-leasing requirements, tenant improvement allowances, and extended lease-up periods before stabilization. Construction loans bridge the period from groundbreaking to occupancy, with permanent financing or property sales providing ultimate repayment.
Construction lending presents distinct challenges reflecting the operational complexity and risk factors inherent in building projects. Construction timeline management affects both project economics and loan performance. Delays in permitting, material delivery, contractor scheduling, or weather can extend timelines and increase costs. Lenders must evaluate schedule realism and require appropriate contingency provisions.
Cost estimation accuracy determines project feasibility, yet construction projects frequently encounter cost overruns due to unforeseen conditions, design changes, or market price fluctuations. Foundation issues, soil conditions, code requirements, and material cost inflation can all impact budgets. Construction loans must include appropriate contingencies and mechanisms for addressing cost overruns without project abandonment.
Contractor qualification and performance create significant risk factors. Builder financial stability, experience, licensing, and insurance all affect project completion probability. Lenders must evaluate contractor qualifications thoroughly and may require bonding or other protections. Contractor default during construction can create complex situations requiring lender intervention to complete projects and protect collateral value.
Our construction loan program combines construction industry expertise with flexible structuring to support successful project completion. We evaluate projects based on detailed cost analysis, contractor qualifications, market conditions, and feasibility assessments. Our underwriting includes review of construction contracts, plans and specifications, permits, and contractor credentials to identify potential issues before funding.
We structure construction loans with milestone-based funding releases tied to verified construction progress. Draw inspections by qualified professionals ensure work completion before fund releases, protecting both lender and borrower interests. Interest reserves cover carrying costs during construction, eliminating payment burdens while projects generate no income.
Our relationship approach extends throughout the construction process. We coordinate closely with contractors, inspectors, and title companies to ensure smooth fund releases and project progress. Experienced construction loan officers understand construction terminology and processes, enabling effective communication with builders and timely problem resolution. For successful builders, we develop ongoing relationships supporting multiple projects.
Miami's construction market reflects the region's unique development environment including coastal building codes, hurricane resistance requirements, and environmental sensitivity. From flood zone considerations to wind load engineering, Miami construction projects face distinct regulatory and technical requirements. Our construction lending incorporates understanding of these local factors essential for accurate project evaluation and appropriate loan structuring.
Construction loans release funds in stages tied to construction milestones. Typical draw schedules include land acquisition, foundation completion, framing, rough mechanicals, drywall, and final completion. Before each draw release, inspectors verify work completion and quality. Approved draws are typically funded within 48 hours of inspection. This milestone-based system ensures work progresses as planned before additional funds are advanced.
Upon construction completion, borrowers typically refinance into permanent financing or sell the property to repay the construction loan. For owner-occupied homes, this involves arranging traditional mortgage financing. For speculative or rental properties, permanent financing or sale proceeds pay off construction loans. We coordinate with permanent lenders throughout construction to ensure smooth transitions and avoid maturity crises.
Construction loans typically require 20-25% down payments, though this varies by project type and borrower profile. Owner-occupied custom homes may qualify for lower down payments, while speculative construction typically requires higher equity contributions. Down payment requirements reflect the higher risk profile of construction lending compared to purchase financing for existing properties.
Cost overruns require immediate communication with our construction team. Depending on overrun causes and project status, we may approve additional funding if property value supports increased loan amounts and borrower contributes additional equity. Contingency reserves included in original loan amounts address typical overruns. Significant overruns may require loan modification or additional collateral. Proactive communication enables collaborative problem-solving.
Owner-builder arrangements are possible for experienced individuals with demonstrated construction management capabilities. We evaluate owner-builder qualifications carefully, considering prior experience, licensing, insurance, and project complexity. First-time builders or complex projects typically require licensed general contractors. Owner-builder loans may have modified terms reflecting additional risk.