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Ground-up loans fund new construction projects from the ground up. These loans play a crucial role in construction finance, offering tailored funding for projects that traditional mortgages may not cover. 

At Malve Capital, we provide flexible and customized loan options to meet the unique needs of each construction project, working to ensure that builders and developers have the necessary resources to bring their visions to life efficiently and effectively. Let’s take a look at how ground-up loans can finance your build-from-scratch project.

Understanding Ground-Up Loans

Ground-up loans are a type of financing specifically designed for new construction projects. Unlike traditional mortgages or renovation loans, they provide the capital needed to start a building project from scratch. These loans cover a wide range of expenses, including land acquisition, materials, labor, and other construction-related costs.

One of the key features of ground-up loans is their flexibility in terms of disbursement and repayment. Funds are typically released in stages, aligning with different phases of the construction process. This structured approach helps ensure that funds are available when needed, while also providing a manageable repayment plan for borrowers.

Lending Criteria, Rates, and Terms

To be eligible for a ground-up loan from Malve Capital, there are several key requirements and criteria. These loans are available for both residential and multifamily property types, catering to a broad range of construction needs. The primary purposes for these loans include acquisition and refinance, offering flexibility in their use. 

The loan terms range from 3 to 24 months, providing short to medium-term financing solutions. Notably, we offer up to 75% for acquisition loans and up to 100% for construction loans. The starting rate for these loans is set at 10%. Additionally, there is no prepayment penalty, and there’s no minimum FICO score requirement, making these loans accessible to a wider range of borrowers​​.

How To Apply For a Ground-Up Loan

The application process for a ground-up loan with Malve Capital is streamlined and user-friendly. Prospective borrowers begin by submitting an initial loan inquiry, either online or through direct contact. This step typically involves providing basic project details and financial information. 

Initially, applicants must provide a photo ID and entity documents, establishing their identity and legal standing. They are also required to authorize credit and background checks, ensuring financial reliability. Additionally, we require a purchase contract and property and liability insurance to confirm the details of the project and secure it against potential risks. This comprehensive yet focused approach ensures that all necessary aspects are covered for a successful loan application​​.

Benefits of Ground-Up Loans

Ground-up loans offer significant benefits, particularly in their ability to provide tailored financing for new construction projects. These loans are designed to cover the full spectrum of construction costs, from land acquisition to the final touches of a build, making them ideal for projects that start from scratch. This comprehensive financing solution allows developers and builders to focus on the construction process without worrying about funding gaps.

Another key benefit of ground-up loans is their flexibility in terms of fund disbursement. Funds are typically released in stages, corresponding to different phases of the construction process, ensuring that financial resources are available exactly when needed. This phased approach not only helps in managing the project’s cash flow but also aligns the repayment schedule with the project’s progress, offering a manageable financial structure for the borrowers.

Why Choose Us?

At Malve Capital, we understand the unique challenges of funding new construction projects and offer ground-up loans tailored to meet these specific needs. Our expertise in this field allows us to offer flexible and customized loan solutions, ensuring that each project receives the financial support it requires. We pride ourselves on our streamlined application process and our commitment to working closely with our clients throughout their project’s lifecycle.

Choosing Malve Capital means partnering with a lender who values transparency, efficiency, and customized financial solutions. We are dedicated to helping our clients bring their visions to life, providing support and guidance at every step. Contact us today to discuss your project. Let’s build the future together!