Loan Programs > Commercial Real Estate > Construction loans
Construction loans
Learn more about our construction lending program which offers distinct products collateralized primarily by multifamily and residential projects:
- Residential Finance: $5MM – $30MM
- Construction Finance: $5MM – $75MM
Overview
Ready Capital provides financing for every stage in the commercial real estate construction lifecycle. Loan amounts from $5 million-$75 million.
- Residential Finance: Land, horizontal, and single-family residential development
- Construction Finance: Ground-up multifamily, Build-to-Rent (BTR), and industrial
Construction Financing for Multifamily & Residential Properties
Ready Capital’s commercial construction loan program illustrates our leadership, credit experience, and financial resources.
| Residential | Construction | |
|---|---|---|
| Loan Purpose | Land, horizontal, and single-family residential development | Ground-up multifamily, Build-to-Rent (BTR), industrial |
| Loan Amount | $5MM to $30MM | $5MM to $75MM |
| Initial Loan Term | 12 to 36 months | 12 to 36 months |
| Max Total LTC | 75% on horizontal and SFR development | 80% |
| Pricing Info. | ||
| Interest Rates | SOFR +500s - 600s | SOFR +500s - 600s |
| Hedge | Interest Rate Cap | Interest Rate Cap |
| Max Stable LTV | 65% of sellout value | Up to 70% |
| Fees | ||
| Origination | 1.0% to 2.0% | 1.0% to 2.0% |
| Exit | 1.0% to 2.0% | 1.0% to 2.0% |
| Extension |
0.5% for 6 months 1.0% for 12 months |
0.5% for 6 months 1.0% for 12 months |
| MINIMUM DSCR / DEBT YIELD | ||
| Minimum Exit DSCR | - | 1.10x |
| Minimum Stable DY | - | 7.00% |
| AMORTIZATION | None during initial term | None during initial term |
| RECOURSE | Bad-Act, Completion Interest & Carry, Environmental | Non-recourse with standard carve-outs |
| Prepayment | Minimum Interest | Minimum Interest |
| EXTENSION OPTIONS | 6 - 24 months | 6-month or 1-year extensions available |
| GUARANTOR CREDIT PROFILE | NW / Liquidity = 100% / 10% of Loan Amount | NW / Liquidity = 100% / 10% of Loan Amount |
"The U.S. remains in a perpetual state of unmet housing demand that continues to drive the delivery of new residential units in a supply-constrained market. The current lack of liquidity for construction projects in the market, provides us the unique opportunity to be selective, transacting with the most experienced sponsors."
Alex Ovalle
Managing Director and Head of Construction Lending
Construction Financing Experts
Our team of professionals have development and construction financing expertise for multifamily, Build-to-Rent (BTR), industrial, and lot development for residential developers.