New Construction Loan Details
Longhorn makes construction loans based on the as-complete value and the total costs of the project. We offer funding for the acquisition of land and construction of the project.
Loan Fees
- Interest Rates starting at 12.99% (interest-only payments)
- As low as 3.49% origination (depends on deal and location)
- Appraisal Fee: $600 on average (varies by market and turnaround time needed)
- Document Review Fee at: $685
- Processing Fee: $650
- Credit Report Fee: $120
- Flood Certificate Fee: $15
Loan Terms
- A mortgagee’s title policy is required.
- A Builder’s Risk insurance policy is required on all loans for 12 months.
- Up to 70% of the As-Complete Value (excluding points and fees), not to exceed 90% of cost
- 12-month term
- 6-month optional extension (extension fees may apply)
Borrower Criteria
- Minimum Median Credit Score of 600
- Minimum of 25% of project cost in reserves in a Checking, Savings, IRA and/or 401(k) account.
- Land equity may be applied to reserve requirement.
- Must provide details on completion of new construction projects or relevant experience.
- No Recent Bankruptcy or Foreclosures (subject to review by Longhorn)
Property Criteria
- First Liens Only
- Single-family, 2-4 unit, townhomes (no condominiums or manufactured homes).
- Our loans are made on the As-Complete Value
- Appraisals must be ordered by Longhorn and performed by a third-party appraiser.
- Properties should be located in or around suburban and/or major metropolitan areas: Dallas, Fort Worth, Houston, Austin, San Antonio, El Paso, St. Louis, Kansas City, Indianapolis, Charlotte, Greensboro/Winston-Salem, Raleigh/Durham, Nashville, Chattanooga, Knoxville, Huntsville, and Birmingham etc…
- Longhorn reserves the right to adjust advance rate requirements as deemed necessary.
Appraisals / Insurance
- All appraisals will be based on After-Repaired As-Complete Value
- Appraisals will only be ordered by Longhorn Investments
Borrower MUST provide a minimum 9-month insurance policy to be paid in full at closing. Borrower's insurance agent should provide a certificate of insurance or evidence of insurance, including invoice, to our processing department prior to closing.
- Insurance premiums are to be paid in full at closing. NO EXCEPTIONS.
- A builder's risk policy is required on all construction loans.
- Replacement cost coverage is required.
- The lender must be named as loss payee and additional insured.
Order your insurance early! Delay in providing insurance coverage can delay the closing of your loan!
