HML on new construction homes

I have 4 new construction homes that I am trying to start the building on. I am having a hard time finding the financing. Do the HML’s typically lend on LTC or Future LTV?
I don’t know if it is best to try to finance one at a time or do all 4 at once?
I have tried going with just one at a time through the banks but due to poor FICO score I need to come in with $30k per home which I don’t have.
The few HML I called don’t do new construction.

Numbers are:
Future LTV $2.27 million (all four combined)
Cost to build $1.5 million (all four combined)

Is this a possible scenario for HML lender?

Geeze only $30k, there requesting that you come in with only 2% of the total cost, that’s pretty excellent. How low of a fico are we talking? If its below 620 and there offering you that, that’s a really good offer.

I meant 30K per home, not on total loan. I adjusted the first post. Sorry.

What was your Fico score? With all the subprime problems going on now it sounds like this will be pretty difficult to do. There were a few lenders that did construction loans, but most of them didn’t do spec loans. Sounds like a very risky thing to do in general anyway. With the tightening up of credit, that will eliminate 500k-1 million borrowers and the supply of inventory may continue to grow for the next year or two.

Let us know if you have any luck.

ok that makes more sense. What state is this property? I can connect you with a hardmoney source that will go 65-70% of the completed value. On a first time deal though there going to want at least 3% of total cost into the deal.

AZ is the state. Buckeye area

You will find loan programs that LTV (loan to value), LTC (loan to cost) or ACV (after completion value).

100 LTC (between 65-75 ACV)
4-5 Points
Spec or Owner/Builder Allowed
6-18 month maturity (extendable to 5 years)
Interest Only Payments
Repayment is based upon disbursed funds not total loan amount
Not FICO Driven (equity driven)
No Reserves Required
Individuals, Corps. Partnerships, Trusts and LLCs allowed
No Prepay


Scott Miller