Ground-Up Construction Loan for 5 Homes in Ambler, 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.