Warehouse Credit Facilities
Warehouse facilities can save loan fees by revolving capital. Best for fast paced tract builders with short cycle times
Max LTV:
up to 65%
Max LTC:
up to 85%
Max Loan Size:
$40,000,000
Max Term (months):
24
Features & Benefits
Offers a low cost per unit by revolving capital
While not for everyone, warehouse facilities can be a powerful solution for fast paced home builders with short-cycle times or multiple pre-sold units. Provides flexibility by allowing multiple loan and product types to be funded within the warehouse facility, and can be used on multiple projects within the same state. Large facility sizes up to $40 million.
Types of Property
Horizontal Land Development: ideal for entitled land with zoning and approvals in place (shovel ready)
Completed Lot Financing: hold competed lots in a bridge loan structure temporarily at 50-55% LTV until ready to build on. Good mechanism to pay down expensive land development debt, or purchase lots for inventory.
Vertical (Ground up) Construction: ideal for
Single Family Home Communities
Townhome Communities
Multi-Building Condominium Projects
2-4 Unit Communities
Units per loan: This type of loan allows for multiple units and entire communities up to and including hundreds of individually parceled lots
Purpose
Provides Capital for Horizontal Land Development, Financing Completed Lots, Vertical Construction Funding. Ideal for fast pace, large volume community builders and developers, or investors with multiple communities and projects operating simultaneously.
This is a unique warehouse loan facility, not a revolving credit facility. Loans are structured as mini-loans within a master facility.