Ground-Up Construction Loans

If you are looking to build to flip for profit, or for rental purposes, MMTC has a long history in ground-up construction financing. We finance both single-family and multi-unit construction projects.

We finance various scenarios. For example:

  • If you have already purchased the lot and own it free and clear with no mortgage against it, we will typically be able to lend you 100% of the hard construction costs and some soft costs such as plans, architect fees, and permits.
  • If you are buying a lot or lot with a house that will be scraped and need a quick close, but don’t yet have your construction plans a budget in place, we have financed these situations many times. Typically, in this case, you will put 20 to 25% down on the acquisition. Then, when you have your plans and are close to having permits, we will refinance the acquisition loan into the construction loan to lend the construction funds.
  • If you have already purchased the lot, but have a loan against it, we will need to refinance the lot loan into our construction loan and applicable loan-to-cost and loan-to-value ratios will apply.

Want to know more information and learn about pricing?

Ready to apply?

To apply:

Visit our Loan application link for the application and personal financial document requirements. Additionally, we will want to see:

  • Contractor’s License and Resume
  • Drawings/Plans
  • Detailed Construction Budget
  • Contract between Borrower and Contractor
  • Settlement Statement from the Original Lot Purchase, If Applicable.

General Terms:

(Subject to Underwriting and Subject to Change):

  • Loan Amounts:  $100,000 to $2,500,000
  • Interest Rates: Varies, but typically around 10.5% fixed, interest only with a monthly payment and interest is charged on the construction funds as funds are disbursed through our construction draw process.
  • Origination Fee: Varies, but typically 2.5%.
  • Loan Term: Typically a 9 month loan with an automatic 3 month extension, so can go up to 12 months total. The monthly extension fee beginning in month 7 is the loan amount times .0033 per

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