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Ground-Up Financing
Construction Loans
Truly's New Construction Loan program is designed to support investors and builders undertaking the development of new residential projects from inception through completion.
Ground-up construction
Spec & custom builds
Up to 24 month terms
Interest-only payments
In-house Construction Management
Flexible draw schedules
Program Highlights
Loan AmountsUp To $5M
Loan Terms12-24 Months
Interest TypeFixed, Interest Only
Property TypesSFR, Condo, Townhomes, 2-4, 5-9
Program Details
New Construction Loan Overview
Comprehensive financing for ground-up construction and new development projects.
Loan Terms & Requirements
Loan TypeBusiness Purpose RTL (Non-Owner Occupied)
Eligible Collateral1-4 Units, SFR/PUD, Condo, NW Condo, Townhome, 5-8 Units (exceptions: > 2 acres; Mixed-use)
Lien Position1st position lien secured by a mortgage, deed of trust, or other security instrument
Loan Term12 months - 24 months
Loan PurposePurchase, Delayed Purchase, Rate/Term Refinance, Cash-Out Refinance
Ineligible StatesNV, ND, SD, VT (AK & HI considered on an exception basis)
Interest ChargedFixed rate, Interest Only
Reserve Requirement6 months of interest only payments
Liquidity Requirement10% of the rehab budget + cash to close + equity shortage
Cost BasisSeasoned Refinance: As-Is Appraised Value + Remaining Budget | Unseasoned Refinance: Lesser of (Purchase Price or As-Is Value of the lot) + Remaining Budget | Teardowns will utilize the lesser of the net purchase price of the existing property or As-Is value of the land
Prepayment PenaltyNot Applicable
Property Type Requirements
| 1-4 Unit Properties | 5-8 Unit Properties | |
|---|---|---|
| Minimum Loan Amount | $100K | $500K |
| Maximum Loan Amount | $5M | $2M (Tier 3 & 4 Ineligible) |
| Appraisal Requirement | Full Appraisal (URAR, 1025, 1073) CDA may be required | Commercial Narrative CDA may be required |
Ready to Get Started?
Connect with one of our construction loan specialists today and get financing for the next ground-up project.