New Construction Loans


Why Get A New Construction Loan?

Our short-term new construction loans are designed to finance the construction or renovation of residential or commercial properties. Funding begins with an initial draw based on the property's current value and the renovation budget, which will be distributed through construction draws.

Standard Loan Terms

  • Maximum Loan Amount: $5,000,000(higher loan amount can be approved)
  • LTC/ARV Limits (Loan to Cost / After Repair Value):
  • For Experienced Investors: The lower of 82.5% LTC or 70% ARV.
  • For New Investors: The lower of 65% LTC or 55% ARV.
  • Interest Rate: Starting at 10.5%
  • Term: 12-24 months
  • Payments: Interest only, with a balloon payment upon maturity.
  • Prepayment Penalty: None
  • Interest Type: Non-Dutch

Standard Closing Costs

  • Origination Fee From: 2-3%
  • Underwriting Fee: $1,500
  • Feasibility and Contractors Report: $1,200
  • Draw Fee: $400 (for subsequent loan draws)
  • Legal Fees: $750 – $1,500
  • Appraisal Fee: $350-$1500
Single family house icon-Get new purchase loan for foreign investor with Lendai

Property Types

  • Condominiums
  • Single-family homes
  • Townhouses
  • 2 to 4 unit properties
  • Multifamily
  • Case-by-case consideration for other property types

Standard Closing Time

  • Typically, closing occurs within 10-20 days.

Lendai is a fintech lender financing US Real Estate Properties For Foreign Investors. Once the title work, appraisal and feasibility report are ready, we will be too!

More Services

US Entity Formation Services

Empowering anyone in the world to turn their real estate dream idea into their US business reality. Forming your US entity in a few simple steps.

Insurance Services

Lendai has partnered with insurance experts to offer insurance policies catered specifically to the needs of foreign investors.

Lending in the Following US States

  California
 Nevada
Arizona
New Mexico
  Oklahoma
 Vermont
Maine

New Hampshire

Massachusetts
Rhode Island
Connecticut
New Jersey
Delaware
Maryland
Virginia
West Virginia
Kentucky
Mississippi
Louisiana
Arkansas
Iowa
South Dakota
Nebraska
Kansas
Colorado

Wyoming

Montana
North Dakota
Minnesota
Idaho
Oregon
Washington
Utah
Alaska
Hawaii

Alaska

Arkansas

Colorado

Connecticut

Delaware

Hawaii

Idaho

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Mississippi

Montana

Nebraska

New Hampshire

New Jersey

Oklahoma flag icon- Foreign national loans for short-term rentals in Oklahoma

Oklahoma

Oregon

Rhode Island

South Carolina flag icon- US mortgage loan for overseas investors to invest in short term rental in South Carolina

South Carolina

South Dakota

Utah

Virginia

Washington

West Virginia

Wisconsin flag icon-US mortgage for foreign investors in Wisconsin by Lendai

Wisconsin

Wyoming

FAQ

A New Construction Loan is a short-term, often interest-only loan specifically designed to provide financing for the building of a new property. Unlike traditional mortgages that are based on the existing value of a property, New Construction Loans are based on the projected value of the property upon completion of the construction project.

Fix and flip loans can be used for various types of properties including single-family homes, multi-unit properties, condominiums, condo-hotels, townhouses and other property types, case by case.

Access to Financing: For foreign investors looking to build and invest in US real estate, New Construction Loans provide a vital source of financing for projects that might not qualify for traditional loans due to the lack of existing structures or proven rental income.

Customization and Control: By financing a new construction project, foreign investors have the opportunity to tailor the property to specific market needs or personal investment strategies, potentially increasing the property’s value and attractiveness in the rental or sales market.

Potential for Higher Returns: New constructions can offer higher returns on investment, especially in high-demand areas or when completed projects fulfill a particular market gap. The ability to start fresh allows for modern designs and energy-efficient materials, making the property more appealing to tenants and buyers.

Market Entry: These loans can serve as an entry point into the US real estate market, allowing foreign investors to establish a presence and begin building a portfolio in locations with strong growth potential.

Capital Appreciation: Investing in new construction in up-and-coming areas can lead to significant capital appreciation, especially if the development contributes positively to the local area or fills a niche demand.

Ready to start financing your investment?

Start maximizing your New Construction profits today. Contact our loan specialists to explore your financing options.
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