Pennsylvania Construction Lenders for Residential Investment Property
Are you building a residential investment property in Pennsylvania? On this page you'll find a list of private construction lenders for ground-up projects throughout the Commonwealth. The maximum loan-to-completed value (LTCV) for most lenders in PA is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Development experience is 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.Many construction lenders focus on Eastern Pennsylvania, and some consider Western PA. Filter your search by selecting a metro area:
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Nationwide Mortgage
Outstanding Service for Investment Property Bridge, Rehab, Rental, and Construction Loans
Funded Ground-Up Construction Loans in Pennsylvania
I Fund Cities, an alternative lending platform, funded a $5,300,000 senior lien position ground-up construction loan for 5 single-family homes in Ambler, a suburb of Philadelphia, PA. The completed value is estimated to be $2,400,000 for each home, which will result in a 44% loan-to-value. Although this Client was doing projects in the Philadelphia area and has known about iFC for years, this is his first new construction loan with us. He came to us because, with banks tightening up their lending guidelines, this Borrower found he would have had to come out of pocket with double the amount of cash that he anticipated when he planned his project. He needed a different option. Because iFC can look at deals more creatively than a traditional bank, we were able to break this deal into multiple loans and get 85% loan-to-cost on each build. Moreover, we broke up the project and associated loans into two phases by originating three new construction loans for phase one and then doing a land loan for the other two lots. We will eventually release those two lots and originate new construction loans on those, as well. The Client was able to come into his projects with less cash out of pocket than he expected. In fact, he only had to bring 15% of equity into this deal. The loan term was set at 24 months. This ground-up construction loan was funded in November 2023.