Construction Loans

Jumbo & Super Jumbo Construction Loan Programs

ELG’s Private Client Group offers unique construction loan programs designed to make the process of financing a multi million dollar home as easy as purchasing a new home. We handle jumbo construction loan requests from $1 Million to $23MM or more, and offer unique features such as cash flow pay option permanent loans. Whether you are a residential developer seeking construction and permanent financing for your customers, or an end user seeking financing to build your own dream home, our one time close jumbo construction loans enable you to build more house with no payments required during the construction period and no risk of having to find permanent financing once the dust settles.

Our Jumbo Construction Loans Feature:

INTEREST RESERVE

The cost of the interest payments due during the construction period may be financed under the program (subject to LTV/loan limits). This eliminates the need to pay the cost of carrying both the new project and the borrower’s current mortgage or rent.

CONSTRUCTION CONTINGENCY RESERVE

Cost overruns, upgrades, and additional work added to a project are a very common occurrence in construction projects. Rather than require the borrower to fund these additional charges out of pocket, the jumbo construction loan program allows a reserve account to be established and financed to cover these expenses (subject to LTV/loan limits). The minimum contingency reserve for new construction projects (new construction and knock-down/build projects) is 5% of the construction cost, and the minimum for renovation projects is 10%.

OPTION ARM END LOAN

No other construction financier offers borrowers the opportunity to choose the popular Cash Flow ARM jumbo end loan with multiple payment options, including a 1.50% minimum payment option. Combined with our interest reserve and the substantial equity created by building your own home instead of buying new, the option ARM end loan enables borrowers to minimize debt service over the first few years of ownership by permitting deferred interest for up to 120% of the final loan amount.

CROSS COLLATERALIZATION

If you are like many of our borrowers, you may want or need the equity from your current residence to fund the downpayment required for your new project. Most borrowers do not want to sell their current residence while the new home is under construction, because it would require them to move twice. The jumbo construction to perm program allows the borrower to tap into the equity in your existing residence to finance the down payment on the construction/renovation of the new property, all in a single transaction.

BUY NOW, BUILD LATER

This unique construction to permanent loan allows borrowers to purchase a property (vacant lot, existing home for knockdown, or existing home for renovated/expansion) without having plans, specification, builder, and/or contract. The borrower is able to purchase the property, have the estimated funds for the project held by the bank, and take six months to finalize the construction aspects of the transaction. The finalized transaction, including plans and specification, builder selection, and “as completed” appraisal, is reviewed to ensure compliance with program guidelines. The borrowers then have up to an additional 18 months to complete the construction project once the transaction has been reviewed and approved.

Additional features of this program are the ability of the borrower to defer putting some of their required downpayment funds until the project is ready to commence. A contingency reserve of at least 10% is automatically included in a BNBL transaction. Borrowers may use the financed interest reserve feature in conjunction with a cross collateralization under this program.

$1MM to $50MM+ Financing | Call (800)290-4770 ext.1