$1.45M ground-up build in Charlotte, NC — 85% LTC, 14-day close

Situation

A small builder agreed to take down three adjacent finished lots in a growing suburb and build three similar single-family homes for sale.

Structure

The budget separated the work on each lot, so the desk could size and track every home on its own. The loan funded 85% of the $1.71M total cost on a 24-month interest-only term at 9.00% with two points, closing in 14 days.

In numbers: a $1,453,500 loan against $1,710,000 of total cost left $256,500 of borrower equity in the deal. The value test — 75% of the $2,400,000 as-complete value ($1,800,000) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $10,901 a month, and 2 points of origination came to $29,070 at closing.

Draws

Each home drew independently through foundation, framing, rough-in and final, so one house moving ahead never waited on the others.

The file

What was in the file: the takedown contract for the three finished lots, plans and specifications for each home, a budget separated by lot, the GC agreement, license and insurance, builder’s risk coverage and the builder’s record of completed homes in the area. The appraisal valued each finished home separately. Separating the budget by lot is what made the structure work — it let the desk track progress and value house by house instead of treating three homes as one undivided project. Six months of reserves covered carry across the staggered schedule.

Exit

Homes sold as they completed, paying down the loan house by house.

• Lot-by-lot budget
• Independent draws per home
• Repeat builder experience
• Sales absorption supported the plan

Ground-up construction program terms →

Ground-up construction loans in North Carolina →