Cash-Out Refinance and Ground-Up Construction Loan for 2 SFR’s in Philadelphia, Pennsylvania

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.