Non-Bank, Ground Up SFR Construction Financing Options

NEBO recently closed two high end spec home construction loans with a private, non-bank construction lender. This national lender can do either individual, higher price point, spec homes or small lot subdivisions and apartments. Loan to cost is typically 70%. Recourse is generally desirable to the lender but often a completion guarantee is sufficient. They offer 2 to 3 weeks turnaround depending on circumstances of the loan request. This group’s capacity has grown significantly in over the last 5 or 6 years.

Many similar lending groups have expanded their capacity and scope. A significant number of new and very well capitalized players have entered the market. This conforms to our view that banks are increasingly shying away from commercial real estate finance and can be unpredictable, too structured and document heavy, and slow. We do often place business with banks but their bucket is very specific and frequently can’t meet client criteria.  We feel our clients should be aware of other options.

Call NEBO for help on your construction deal on your SFR development or other commercial/residential projects.