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:

  • Construction Finance: $5MM – $75MM
  • Residential Finance: $5MM – $20MM


Ready Capital provides financing for every stage in the commercial real estate construction lifecycle. Loan amounts from $5-$75 million.

Construction Financing for Multifamily & Residential Properties

Ready Capital’s commercial construction loan program illustrates our leadership, credit experience, and financial resources. Major transactions totaled over $220 million in 2022.

Residential Finance Construction Finance
Loan Purpose Land, horizontal, and single-family residential development Ground-up multifamily, Build-to-Rent (BTR), industrial
Loan Amount $5MM to $20MM $5MM to $75MM
Initial Loan Term 12 to 36 months 12 to 36 months
Maximum Total LTC 75% on horizontal and SFR development 80%
Pricing Information
Interest Rates Floating, SOFR Based SOFR + 600-750
Hedge Interest Rate Cap Interest Rate Cap
Max Stable LTV 65% of sellout value Up to 70%
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 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), and lot development for residential developers.

Get a construction loan quote

We'll need just a few details about you and your property to get you an accurate loan estimate.