Loan FAQ's
About Builders Capital's Loans
We’ve compiled some of the most frequently asked questions
about our loans to save you time and energy. Frequently
asked questions about Construction
Draws are available. Still have questions?
Please call us toll-free at (877) 647-6984 for a one-on-one
consultation.
What is the builder approval process?
Our
builder approval process is fast and easy. We only require
a copy of each builder’s license and a completed
application. Even better, builders don’t have to wait
for approval to start work.
What underwriting standards apply for your construction
loans?
We allow for no doc, stated income and stated asset
applications. We also do not have debt ratio requirements.
Are non-arms length transactions allowed? Yes. We evaluate such transactions case by case. If
borrowers enlist relatives or friends to build their
houses, they still can qualify.
Does Builders Capital allow gift funds? Yes. Down payments do not have to come from the borrower’s
personal funds. Family and friends can assist with the
down payment.
Is seller subordination acceptable? Yes. We are flexible with seller financing options.
Do modular or kit-built homes qualify? Yes. We fund houses built off-site (in full or in part)
and homes constructed from kits that are delivered to
the site. Builders Capital will not, however, pay upfront
deposits to vendors. Parts and materials must be delivered
to the site and assembled to reimburse the borrower.
Are contingency funds required? Not for all of our programs. Contingency funds are only
needed for our Owner-Builder Program. We make it easy
on builders by not requiring a contingency fund in their
budgets.
Does Builders Capital work with LLCs and corporations? Yes. When builders or investors have their own companies,
Builders Capital can loan to those companies directly.
How many projects can a builder do at one time? Typically, we limit projects to two at a time per builder.
As a builder develops a relationship with us, we will
consider taking on more.
Does Builders Capital fund rehab and remodeling projects? No. Unfortunately, we do not fund rehab or remodeling
projects.
What kind of payments does the borrower make? Payments are interest-only each month during construction.
Upon completion of the project, Builders Capital is paid
the principal in full by the builder or by another lender.
What are Builders Capital’s reserve requirements?
We don’t have any reserve requirements. Borrowers are
required to prepay the first three months of interest
payments. We do not require any additional funds.
What are Builders Capital’s terms? Are extensions
allowed?
Our terms are six to nine months. Ninety-day extensions
are available upon approval.
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