Ground-Up Construction Loans

MMTC has a long history in construction financing for both single-family and multi-unit construction projects.  Typical neighborhoods for this type of loan are strong infill areas in established geographies.  After meeting qualifications, MMTC will consider funding these loans up to 80%-90% of cost.  In many cases, the projects are built on a spec-basis and no pre-sale contract is required for funding.

We finance various scenarios. For example:

  • Construction loan when lot is already owned: If you have already purchased the lot and own it free and clear with no mortgage against it, MMTC will typically be able to lend you 100% of the hard construction costs and some soft costs such as plans, architect fees, and permits.
  • Quick acquisition to purchase lot, then opportunity to refinance into construction loan once plans are in place: 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, MMTC is able to provide interim financing for the initial acquisition. Typically in this case, you will put 20% –  25% down on the lot acquisition price. Then, when you have your plans and are close to having permits, we will refinance the acquisition loan into the construction loan up to 90% of the cost of construction. 
  • Refinance existing property loan into construction loan: If you have already purchased the lot, but have a loan against it, MMTC can refinance the lot loan into our construction loan; applicable loan-to-cost and loan-to-value ratios will apply.

General Terms

All terms are subject to underwriting of the Borrower and subject property/lot. 

Loan Amounts

We offer loans from $100,000 to $2,500,000.

Interest Rates

From 9.0% – 11.0% fixed rate. Monthly payments are interest only. Interest is only charged on the construction fund as funds are disbursed through our construction draw process. Origination fees range from 2.0% – 2.5%. 

Loan Term

Typically a 9 month term with an automatic 3 month extension. There is a monthly extension fee beginning in Month 10 that is equal to the loan amount times 0.0033 per month.  

To apply:

Visit our loan application link for the application and personal financial document requirements. Additionally, if you have these documents available, we will want to see:

  • A signed construction contract, including s tart dates and estimated completion date.
  • Contractor’s License and Resume
  • Drawings/Plans for the build. 
  • Detailed Construction Budget
  • Contract between Borrower and Contractor outlining clear specifications of each party’s duties/responsibilities. 
  • Settlement Statement from the Original Lot Purchase, If Applicable.
  • Lot details inclusive of a deed or offer to purchase

Ready to get started?

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