Residential Construction Loan Program
- Product: Residential construction financing
- Lien position: 1st lien position only
- Property Type: Single family
- Occupancy: Owner occupied
- Rate/Fee: Prime Rate with a .50% origination fee
- Interest: Variable monthly, based on total drawn on construction funds
- Term: 12 months with up to 6 months extension option available with fee
- Geographic Restrictions: MD, DC, VA & DE only
Loan Amount & Reserves Matrix:
Loan-to-Cost (LTC) Matrix
| LTC | Maximum Loan Amount | Minimum Reserves* |
|---|---|---|
| 90% | $1,500,000 | 9 Months |
| 80% | $2,000,000 | 12 Months |
Minimum loan amount $350,000 LTV up to 85% based on as completed value.
Credit & Qualifications
-
- Minimum credit score 660
- Debt-To-Income: Maximum 43%
- Borrower Eligibility: U.S. citizens or legal permanent residents
- Primary residence only
- Individual borrowers only, entities are ineligible
- Permits in hand or within 30 days after closing
- Contractor must be approved by Capital Bank, no self-managed builds permitted
- Pre-approval: All transactions must have a pre-approved takeout loan issued by Capital Bank Home Loans prior to construction loan approval.
- Pre-approval must be based on a loan amount equal to or greater than the construction loan with greater than market rates.
Project
- Sales contract or settlement statement
- Timeline for plans, permits, construction
- Line item budget with breakout of what has been spent to date
- Plans or drawings
- Permits (if available)
Minimum GC Qualifications and Requirements
- License
- Insurance
- Minimum 5 years in business
- GC contract or proposal
- GC info with summary of recently completed projects of similar size and scope, website if available
- Draw schedule (or proposed draw schedule). Inspections may take up to a week.
- Work must be completed or materials purchased and stored on site for a draw to be funded.