Loan Products

Understanding Construction Loans:

A Construction Loan is a short-term loan used to finance the building of a home or a real estate project. Unlike traditional mortgages that provide a lump sum for the purchase of a property, construction loans cover the cost of developing a new property from the ground up or undertaking significant renovations. These loans are typically disbursed in stages or “draws” as the project reaches specific milestones, with interest only paid on the amount drawn until the construction is complete.

Construction loans differ significantly from traditional mortgages. While a traditional mortgage is based on the property’s current value, a construction loan considers the projected value of the property after completion. This makes the approval process for construction loans more stringent, requiring detailed project plans, a realistic budget, and often a higher down payment and interest rate due to the perceived higher risk.

WE OFFER TWO TYPES OF CONSTRUCTION LOANS 

Stand-Alone Construction Loans: 

Ideal for private land owners who already own their lot or purchasing a new lot and wish to build. This loan covers the construction phase only. Upon project completion, borrowers are responsible for paying off the loan or refinancing into a traditional mortgage.

Owner-Builder or Contractor Loans: 

Designed for individuals who wish to act as their own general contractor or a general contractor hired by a private owner who wishes to build a new home. These loans require the borrower or the general contractor to demonstrate a detailed knowledge of construction and a comprehensive project plan.

Terms and Rates

Loan Criteria

We target construction loans between $100,000 and $2,500,000 USD. Larger loan applications are also welcome. We are interested in loan opportunities on prime properties worldwide.

Interest Rates

Our rates typically range between 10% and 15% depending upon the usual factors such as quality of the project, experience of the borrower, location of the project, cash flow and the nature of the borrower’s business plan.  Interest-only programs are available.

Term

12 to 18 months

Loan-To-Value

For first mortgages only, we will typically lend up to 60% loan-to-value – to be determined on a case-by-case basis, based on the borrower creditworthiness, net worth, location of the property and meaningful guarantees.

Property Types

Single-family homes, townhouses and condos are allowed.

Occupancy

Primary residence, second homes and vacation homes are allowed.

Transaction Types 

Purchase and Refinance. 

Credit

Alternative Credit (Letter of Reference from Accountant and Banking Institution).

Income

Bank statements and financial statements are acceptable to verify income. 

Prepayment

We have flexible prepayment options.

Points and Exit Fee

Typically 2% to 5%. In some cases part of the origination fee may be structured as an exit fee (deferred until the loan is repaid).

Recourse

Our loans are structured with full recourse.

Payment Reserves

Depending upon the financial strength of the borrower, we may elect to structure the loan with an interest reserve of 1 to 3 months.

Loan Approval to Closing

Typically 45-60 days. 

Brokers Referrals

We always welcome the opportunity to expand our network of mortgage brokers, realtors and agents, so please call or email us with your clients’ loan opportunity for a fast, efficient and reliable response.

HOW TO APPLY FOR A CONSTRUCTION LOAN WITH US 

Submit Your Documents

You’ll need to prepare and gather a variety of different documents to submit your loan application.

• Driver’s license and Passport of country of origin
• Personal Bank Statements (Six recent months)
• Business Bank Statements if self-employed (Six recent months)
• Credit Report and/or Letter of Reference from Accountant and Banking Institution
• Financial Statements (Two recent years)
• Time in business if self-employed 
• Property ownership documents (such as the deed)
• Business tax returns if self-employed (Two recent years)
• Collateral (Property being financed and other assets)
• Cash Flow Statement if self-employed (Recent)
• Business plan if self-employed

REQUIRED DOCUMENTATION FOR A CONSTRUCTION LOAN 

Land Ownership: If you already own the land on which you’re building, you’ll need to provide proof of ownership and any existing mortgage details.

Application:  We may require a nominal review fee of $500 to $950 to evaluate your loan package. You will be notified if a review fee is applicable once we receive your documents.

Detailed Project Plans: Provide complete architectural plans and specifications for the construction project for us to assess the feasibility and potential value of the finished property.

Budget: Submit a detailed budget that includes all costs associated with the project, such as materials, labor, permits, and contingency reserves. This budget should be realistic and backed by quotes or bids from contractors.

Contractor Bids: We typically require bids from licensed and insured contractors. These bids should detail the scope of work and the costs involved, providing assurance that the project will be completed professionally and within budget.

Proof of Income: As with most loans, you’ll need to show us that you have the financial means to repay the loan with documentation that verifies your income.

UNDERSTANDING GEM PRIME LOAN

GEM Prime is a home financing solution for those who do not qualify for traditional financing. It offers competitive pricing and allows for the use of alternative income documentation. This product is available worldwide.

Terms and Rates

Loan Criteria

We target loans under the GEM Prime between $200,000 and $1,000,000 USD. Larger loan applications are also welcome. We are interested in loan opportunities on prime properties worldwide.

Interest Rates

Our rates typically range between 10% and 15% depending upon the usual factors such as the borrower creditworthiness, location of the property and equity.  Interest-only programs are available.

Loan Amount

$200,000 to $1,000,000 USD.

Term

1 to 3 years.

Loan-To-Value

For first mortgages only, we will typically lend up to 70% loan-to-value – to be determined on a case-by-case basis, based on the borrower creditworthiness, net worth, location of the property and meaningful guarantees.

Property Types

Single-family homes, townhouses and condos are allowed.

Occupancy

Primary residence, second homes and vacation homes are allowed.

Transaction Types 

Purchase and Refinance. 

Credit

Alternative Credit (Letter of Reference from Accountant and Banking Institution).

Income

Bank statements and financial statements are acceptable to verify income.

Prepayment

We have flexible prepayment options.

Points and Exit Fee

Typically 2% to 5%. In some cases part of the origination fee may be structured as an exit fee (deferred until the loan is repaid).

Recourse

Our loans are structured with full recourse.

Payment Reserves

Depending upon the financial strength of the borrower, we may elect to structure the loan with an interest reserve of 1 to 3 months.

Loan Approval to Closing

Typically 21-45 days. 

Broker Referrals

We always welcome the opportunity to expand our network of mortgage brokers, realtors and agents, so please call or email us with your clients’ loan opportunity for a fast, efficient and reliable response.

HOW TO APPLY FOR OUR PRIME LOAN

Submit Your Documents

You’ll need to prepare and gather a variety of different documents to submit your loan application.

• Driver’s license and Passport of country of origin
• Personal Bank Statements (Six recent months)
• Business Bank Statements if self-employed (Six recent months)
• Credit Report and/or Letter of Reference from Accountant and Banking Institution 
• Financial Statements (Two recent years)
• Time in business if self-employed 
• Property ownership documents if refinancing (such as the deed and prior title insurance)
• Business tax returns if self-employed (Two recent years)
• Collateral (Property being financed and other assets)
• Cash Flow Statement if self-employed (Recent)
• Business plan if self-employed

REQUIRED DOCUMENTATION 

Land Ownership: If you already own the land on which you’re building, you’ll need to provide proof of ownership and any existing mortgage details.

Application:  We may require a nominal review fee of $500 to $950 USD to evaluate your loan package. We will notify you once we receive your package if a review fee is applicable.

Detailed Project Plans: Provide complete architectural plans and specifications for the construction project for us to assess the feasibility and potential value of the finished property.

Budget: Submit a detailed budget that includes all costs associated with the project, such as materials, labor, permits, and contingency reserves. This budget should be realistic and backed by quotes or bids from contractors.

Contractor Bids: We typically require bids from licensed and insured contractors. These bids should detail the scope of work and the costs involved, providing assurance that the project will be completed professionally and within budget.

Proof of Income: As with most loans, you’ll need to show us that you have the financial means to repay the loan with documentation that verifies your income.

Understanding Bridge Loans

Bridge loans are designed to help our Borrowers accomplish their immediate goals and then, depending upon the Borrower’s business plan, to exit the bridge loan either upon the sale of the property or by refinancing the bridge loan with an inexpensive bank loan. As a provider of bridge loans for investment properties, vacation homes, and owner-occupied real estate, we will help you or your client execute a viable business plan to achieve your exit strategy. Bridge financing can benefit borrowers who need quick access to funds but don’t qualify for long-term financing or require more flexibility in their loan terms.

Loan Criteria

We target bridge loans between $500,000 and $10,000,000 USD. Larger loan applications are also welcome. We are interested in loan opportunities on prime properties worldwide.

We provide first mortgage bridge loan financing for the following property types:

• Multi-family / Apartment buildings
• Mixed-use properties
• Commercial and retail co-ops and condominiums
• Retail / Shopping Centers
• Acquisitions of performing loans, defaulted loans or loan portfolios
• Office buildings
• Warehouse / Industrial

Our borrower must have a viable business plan and exit strategy along with a relevant track record and experience, net worth and liquidity.

Terms and Rates

Interest Rates

Our rates typically fall within the range between 10% and 15% depending upon the usual factors such as the quality of the project, experience of the borrower, location, cash flow and the nature of the borrower’s business plan. Interest-only programs are available.

Term

6-12 months

Loan-To-Value

For first mortgages only, we will typically lend up to 50% loan to value – to be determined on a case-by-case basis, based on net worth, liquidity and meaningful guarantees.

Transaction Types 

Purchase 

Credit

Alternative Credit (Letter of Reference from Accountant and Banking Institution)

Income

Bank statements and financial statements are acceptable to verify income.

Prepayment

We have flexible prepayment options.

Points and Exit Fee

Typically 2% to 5%. In some cases part of the origination fee may be structured as an exit fee (deferred until the loan is repaid).

Recourse

Our loans are structured with full recourse.

Payment Reserves

Depending upon the financial strength of the borrower, we may elect to structure the loan with an interest reserve of 1 to 3 months.

Loan Approval to Closing

Typically 21-45 days.

Brokers Referrals

We always welcome the opportunity to expand our network of mortgage brokers, realtors and agents, so please call or email us with your clients’ loan opportunity for a fast, efficient and reliable response.

How To Apply for A Bridge Loan With Us

Submit Your Documents

You’ll need to prepare and gather a variety of different documents to submit your loan application.

Business plan if self-employed

Driver’s license and Passport of country of origin

Personal Bank Statements (Six recent months)

Business Bank Statements if self-employed (Six recent months)

Credit Report and/or Letter of Reference from Accountant and Banking Institution 

Financial Statements (Two recent years)

Time in business if self-employed 

Property Purchase Contract

Business tax returns if self-employed (Two recent years)

Collateral (Property being financed and other assets)

Cash Flow Statement if self-employed (Recent)

Securing a loan with our company involves a multi-step process that requires thorough preparation and effective communication. Here’s a step-by-step guide to navigate from the initial inquiry to loan closing, ensuring a smooth journey through the application process:

1. Initial Inquiry and Pre-qualification: Begin by contacting us to discuss your project and financing needs. We will tell you the loan amount you might qualify for based on preliminary financial information.
2. Loan Application: The next step is to complete the loan application and submit the required documentation. For a construction loan, you would need to include detailed project plans, a comprehensive budget, contractor bids, and proof of income. Accuracy and completeness are crucial to avoid delays in the approval process.
3. Underwriting and Approval: After receiving your application, we will begin the underwriting process. This includes a thorough review of your financial information, credit history, and the details of your construction project, if applying for a construction loan. During this phase, be prepared to provide additional information or clarification as requested by us. This process may take 7 to 15 days.
4. Appraisals and Inspections on Construction Loans: We may require an appraisal of the proposed construction project to determine its estimated value upon completion. Additionally, inspections may be conducted at various stages of the construction process to ensure the project is progressing as planned and in compliance with local regulations.
5. Finalizing the Loan and Draw Schedule on Construction  Loans: Once the loan is approved, you’ll work with us to finalize the terms and establish a draw schedule. The draw schedule outlines how the loan funds will be disbursed in stages tied to specific construction milestones. Understanding and agreeing to this schedule is critical to ensure your project has the necessary funding at each stage.
6. Loan Closing: The final step is the loan closing, where you sign the necessary paperwork. For a construction loan, the initial disbursement is made at this stage. Be sure to review all documents carefully before signing to understand your obligations fully.

Overview of the Closing Process 

The closing process typically involves: a final review of the loan terms, signing of legal documents, and payment of closing costs. During this time, it’s essential to review the loan agreement carefully to ensure that all terms, including the interest rate, loan amount, draw schedule, and repayment plan, are as discussed. This is also when the initial disbursement is arranged, allowing construction to commence.

Common Closing Costs

Closing costs can vary but generally include application fees, loan origination fees, appraisal and inspection fees, title searches, and legal fees. It’s also common to encounter costs related to setting up an escrow account for property taxes and insurance. To help you prepare for these expenses, we will provide you with an estimated closing cost statement in advance. This preparation allows you to budget accordingly and avoid surprises at closing.