· Programs · Sayasone Phongvichith
Ground-Up Construction: infill builds, by conversation
Ground-Up Construction at RED is for infill lots and is handled by conversation. Here are the published limits and what to bring.
Most of our programs start with a scenario and a published set of numbers. Ground-Up Construction does too, with one difference in tone: it is described as infill builds, by conversation. The desk wants to talk the project through with you.
What infill means here
Infill means building on a lot within an established area, among existing development. The program is for infill lots only. Large tracts and rural or remote sites do not fit.
The published limits
- Up to 75% LTC if the project is permitted
- Up to 60% LTC if it is unpermitted
- Up to 70% ARV-LTV
- Up to 90% loan to final cost
- 680 minimum FICO
The gap between permitted and unpermitted is worth noticing. Having permits in hand supports a higher share of cost.
Reading the limits
LTC compares the loan to what the project costs, and ARV-LTV compares it to the finished value. Loan to final cost compares it to the full cost of the finished project. As with any program, a loan has to fit within every limit that applies.
What to bring to the conversation
- The lot's address and its permit status
- Plans, a scope of work and a staged construction budget
- Your expected finished value and the comps behind it
- Your track record on similar projects
The more the desk can see up front, the faster the conversation gets to real answers.
Program figures are indicative only and subject to complete documentation, underwriting, appraisal and final credit approval. This post is general information, not financial or legal advice.