Ground Up Construction Loans

For investors, NSS Lending requires all construction plans for the project to be build-ready. In addition to finished architectural plans, being build-ready is receiving permission to build on the land with a government land registration permit which can take up to 18 months to receive, so it is important to plan accordingly. Build-ready land has also been approved by a developer for an immediate start on the construction. With all requirements fulfilled, NSS can start your loan as soon as possible.

At NSS Lending, we require that any borrower seeking financing for a new construction project have at least one start-to-finish experience with a new construction project beforehand. This means that the borrower should have previously financed at least one construction project in the past in their name or their entity's name. The project must have been seen all the way through the build to the exit of the property by sale or refinance into a rental. For investors that are builders, your builders experience will count as two.

If you start a construction project and want to use the property as a rental once it is finished, you need to make sure refinance options are available to turn your ARV construction loan into a long-term DSCR loan. These loans require that the market rent for the property is at least 1% of the total property value to support mortgage payments. With this in mind, the property also needs to have tenants in place, and NSS Lending can start the refinance loan process right away!