Philadelphia Construction Lenders for Residential Investment Property
Are you building a residential investment property in the Philadelphia metro area? On this page you'll find a list of private construction lenders for ground-up projects throughout Philadelphia's urban areas. The maximum loan-to-completed value (LTCV) for most lenders is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Experience is almost always required. Most lenders will require the project to be fully entitled and shovel ready. A small percentage of lenders will consider land acquisition and/or horizontal financing. The lenders listed here can fund a single home build, or a development with multiple homes. We have a separate page for lenders that offer ground-up construction financing for commercial properties.Searching...
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Nationwide Mortgage
Outstanding Service for Investment Property Bridge, Rehab, Rental, and Construction Loans
Funded Ground-Up Construction Loans in Philadelphia
Cash-Out Refinance and Ground-Up Construction Loan for 2 SFR’s in Philadelphia, Pennsylvania
$1,334,000
i Fund Cities, an alternative lending platform, funded a $1,334,000 senior lien position cash-out refinance and ground-up construction loan for 2 single-family homes in Philadelphia, PA. We funded 100% of the $772,000 construction budget. iFC’s Chris Tereo met this new construction Borrower at a networking event. The Borrower was doing a single-family renovation and a single-family new construction as a PUD (planned unit development). The Customer’s bank loan was not fulfilling their needs. When project costs came in higher than expected, due to the current state of the market, the bank was unable to increase their construction budget. The Customer needed more time on their loan, along with additional funding, or they were going to have to get an equity investor involved with their project. iFC helped this Borrower by using the equity built into the project to do a cash-out refinance and to get a new budget to fund 100% of the construction. iFC gave the Borrower a construction draw at closing for work completed to date, so the Borrower actually walked away with some cash. The Borrower also put money into an interest escrow account and got a new budget for 100% of the construction budget. This Borrower was able to move forward on their project without raising capital from limited partners or equity investors, and without having to inject their own capital into the deal. The Borrower plans to sell the property upon completion. The loan term was set at 18 months. This residential ground-up construction loan was funded in October 2023.
Ground-Up Construction Loan for Manayunk Luxury Home in Philadelphia, Pennsylvania
$633,805
I Fund Cities, an alternative lending platform, funded a $633,805 senior lien position ground-up construction loan for the acquisition of a luxury single-family residence in Manayunk, PA. We funded 83% of the $125,000 purchase price and 99% of the $643,248 construction budget, while the Borrower contributed 17% and 1% cash at closing, respectively. The completed value was estimated at $1,248,000 so our loan-to-value was 51%. This builder specializes in finding and acquiring land, taking it through zoning and permitting, and then maximizing the value by building luxury single-family homes. He was looking for a lender who offered great products and who could close quickly. iFC offered him these things, along with competitive rates and terms. Having encountered broken promises and delays in closing with previous lenders, choosing a lender who he could trust, and who communicated effectively with him, was of key importance to him. The Client appreciated that iFC’s communication was respectful and efficient, giving him the time and space he needed to put his documentation together and that working with iFC made for easy closing. iFC was able to help this client with a New Construction loan, which allowed him to put his money into other projects. The client now considers iFC a part of his team and values our team’s view on his projects. The Borrower plans to sell the property upon completion of the construction. The loan term was set at 15 months. This SFR ground-up construction loan was funded in December 2022.
Ground-Up Construction Loan for 8 Duplexes and 10-Unit Multifamily Property in Philadelphia, Pennsylvania
$6,000,000
I Fund Cities, an alternative lending platform, funded a $6,000,000 ground-up construction loan in 1st lien position for a portfolio of multifamily residential properties in Philadelphia, PA. We funded 100% of the $5,700,000 construction budget. The completed value was estimated to be $9,000,000 so our loan-to-value was 67%. This is the first deal that this company, which specializes in residential and multifamily development in Philadelphia, is doing with i Fund Cities. The customer was looking for a lender to move quickly and to give more leverage than their banking relationships. The customer bought land and added a ton of value by going through zoning/entitlements. The bank was not comfortable lending on the imputed equity that was built into the project, thus, the total loan amount the bank was willing to offer was much lower than the amount the developer was seeking. We were able to look at the value added to the land and give the customer value for the equity they built. Not only were we able to give 10% more leverage than the bank, but we also gave them credit for the imputed equity, which made for a much better loan. The Borrower did not have to bring any cash to closing – in fact, they walked away with a check! In addition, we were able to originate a loan for all 26 units so we did not have to phase construction. The subject property was approximately 27,060 square feet. The loan term was set at 26 months. This ground-up construction loan was funded in December 2022.