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 commercial projects:
- Construction Finance: $20MM – $50MM
- Construction-to-Bridge Finance: $20MM – $50MM
INNOVATIVE CONSTRUCTION-TO-BRIDGE COMPLEMENTS OUR EXISTING CONSTRUCTION LENDING PROGRAM
Construction-to-Bridge combines two lending solutions into one streamlined, cost-effective financial option for builders and owners. It provides construction financing with the flexibility to convert to a bridge loan upon project completion, helping borrowers transition seamlessly into the seasoning period. With one loan and one set of documents, this one-stop solution simplifies the financing process, saves time, and reduces complexity.
Key features of the product include:
- Duration – Loan product is structured with four years of initial term plus extension option
- Lower Costs – One time legal document cost and and lender fees
- Lower Blended Rate – Upon TCO, rate will burn down to a market bridge rate
- Recycle Capital – Potential to earnout invested cash equity up to 50% subject to updated appraisal, LTV, and metrics
Overview
Ready Capital provides creative construction financing solutions. Loan amounts from $20 million-$50 million.
- Construction Finance: Ground-up multifamily, BTR, and industrial
- Construction-to-Bridge Finance: Ground-up multifamily, BTR, and industrial
Construction Financing for Multifamily & Commercial Properties
Ready Capital’s construction lending program illustrates our leadership, creativity, credit experience, and financial resources. With a dedicated Construction originations and asset management team, we are able to provide customized financing solutions and timely draw administration for your development project.
| Construction | Construction-to-bridge | |
|---|---|---|
| Loan Purpose | Ground-up multifamily, BTR, industrial | Ground-up multifamily, BTR, industrial |
| Loan Amount | $20MM to $50MM | $20MM to $50MM |
| Initial Loan Term | Up to 5 Years including extensions | Up to 5 Years including extensions |
| Max Total LTC | 75% | 75% |
| Pricing Info. | ||
| Interest Rates | Floating (SOFR-based) | Floating (SOFR-based) |
| Hedge | Interest Rate Cap | Interest Rate Cap |
| Max Stable LTV | 70% | 70% |
| Fees | ||
| Origination | 1.00% | 1.00% |
| Exit | 0.25%+ | .025%+ |
| Extension | 0.25%+ (custom fees available) | 0.25%+ (custom fees available) |
| MINIMUM DSCR / DEBT YIELD | ||
| Minimum Stable DSCR | 1.10x | - |
| Minimum Stable Debt Yield | 7.00% | - |
| AMORTIZATION | Interest only during initial term | Interest only during initial term |
| NON-RECOURSE | Non-recourse with standard carve-outs and certain guarantees, including completion | Non-recourse with standard carve-outs and certain guarantees, including completion |
| Prepayment | Open | Open |
"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
Head of Construction
Construction Financing Experts
Our professionals have construction financing expertise for ground-up multifamily, BTR, and industrial, as well as land, horizontal, and single-family residential development.