La Quinta provides funding for Ground-up Construction, Value Add Rehab, Property Conversions, including the arrangement for interim and long-term financing as an exit to construction financing for All Types of Commercial real estate, including Multifamily of all types, Single-Family housing developments, Spec housing, and other investor options as non-owner occupied.
If you are like many who have experienced a rapid increase in construction costs in 2020, including lumber increases of 50%. Ask about our Fast-Track program available to qualified projects that can have you out of the ground in as little as 4 weeks.
Debt & Equity Options: Are construction debt up to 75% Loan-to-Cost, or combinations of debt and equity to a maximum of 85%. Recourse and Non-recourse are subject to underwriting guidelines.
Agency Debt: Provides 85% to 90% of the replacement cost, as one non-recourse loan for both the construction period with the same carry forward locked rate amortized over forty-years. Non-recourse applies to construction and long-term financing and is easily assumable. (For more information visit our "Agency" section 221-(d) (4) or 232 Assisted Living)
Other Single-Family Construction & Long-term Programs
Subdivision Private Revolver: Available to seasoned lot developers, providing 95% of costs subject to 65% of completed value. Flexible structuring, including phased projects with lots such as PUD
Subdivision Debt & Equity: Contact La Quinta for qualifications, project sizing, and analysis.
Housing as Non-Owner Occupied:
Fix & Flip Terms: 12 months Loan Amounts: $100,000 up to $2mm LTV & Rehab: 90% Acquisition & 95% -100% Rehab, not to exceed 75% ARV Rates.
Contact La Quinta for best sources/options.
Non-Construction Single Family Long-Term Hold Investor
Term: 30 years Amount: $100,000 up to $2mm LTV: 80% Purchase, 75% Refinance including Cash-out Rate: Starting at 4.95% principal and interest.
Option 2: As exit financing from a construction loan. Made too Single Family subdivision held as investment features:
85% LTV as purchase or refinace
80% LTV Cash out
2.35% fixed rate for 35 years as non-recourse.
No limit to the number of properties you can own or finance. No personal income verification property cash flow is the only requirement. No time requirement for how long you have held the property.
Non-Construction Portfolio Financing: Available to investors who want to refinance several properties as on loan. Property mix can include investor held Single-family and 1-4 unit, held in different locations and states. Offering Choices of either 7 or 30-year fixed rate.
Commercial Construction:
Funds are available for all types of commercial real estate projects including capital stacks of Debt & Equity, and alternative sources. We encourage project submission and direct contact with La Quinta as there are a large array of funding sources available to Clients given our long business history.
Proprietary Capital: A large sum has now been secured and is ready for immediate release to small Spec home builders and large subdivision developments with the following highlights:Turn-Times: Letters of interest within 24 to 48 hours from complete package and answers to underwriting questions. Closings 35 to 45 days depending upon time requirements of appraisal in geographic locations.
85% LTC / 70% LTV Rates 8.90%-9.25% Interest only: Charged on only funds drawn Loan Term: 12-15 months, extensions available $500,000 minimum loan size
Stick Built or Modular consideration: Single-family homes, Townhomes, or 1 - 4 units as apartments, and Subdivision developments. Non-Recourse based on borrower experience and financial strength.
Models: Allowed if a line-item cost in budget (reasonable and market costs)Land Only:Allowed if vertical construction can begin within 4-6 months of initial funding/closing. Needs to be clear path to vertical with no risk or time delays. (Contact La Quinta for outside programs/resources if needed).
Experience: Small developer with little or no experience will be considered if a strong borrower, underwriting will look to GC for track record and building experience. Approvals are deal by deal but will look at the resumes of both borrower and their GC to solve for the experience.
Inspections/Draws: In house without the need of Third parties, until further notice.FICO (640+), and post-close liquidity test of 5% of loan commitment
Markets: All states Excluding: Arkansas, Mississippi, Louisiana, New York, and New Jersey.
Build For Rent Subdivision Financing:
Open to large and small tract developers and builders who are joining the ever-increasing national trend of producing and holding rental homes. Includes non-agency bundled capital for both construction and permanent financing.
Construction Features:$3mm minimum loan to a maximum of $50mm Interest-Only-Rates: Will vary by size & scope of project, location, financials, and experience75% Loan-to-Cost Non-Recourse Exit Fee if construction loan does not roll into the long-term loan below.
Long-Term Features: (As exit from the above construction loan)Mid 4% rates subject to underwriting and loan term selected75% Loan-to-ValueNon-recourseLoan Term: 3, 5, 7, 10, with 30 year amortizationProgram allows long-term financing when homes are rent ready, with a minimum loan of $500,000.
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