Home Builder Finance

Developer Loan Program Overview ADC

Home Builder Financing Available In These States

  • Acquisition, Development & Construction
    • Acquisition and Development of the Land, and
    • Construction of the Homes (required)
  • Non-recourse from a principal repayment standpoint
    • MSC requires a completion guaranty, an environmental indemnity, and standard “bad boy” carve-outs
  • Advance rate up to 85% LTC or 75% LTV blended on a basic AD&C loan structure
  • Minimum loan amount is $10 million and maximum is $100 million (lower/higher on an exception basis)
  • Maximum project size is 150 lots/units (greater if project, absorption and sponsorship are compelling)
  • Maximum loan term is 36 months
  • Interest is prime-based with a floor
    • The floor will be in the 6.5%-7.5% range
    • The interest is paid on loan balance (not on commitment)
  • Commitment fee is 1% per annum and is accrued to the loan balance (versus paid up front)
  • Exit fee is charged based on the sales price of the individual unit and collected at the close of escrow. The exit fee is deal specific and reflects risk and the advance rate