Loan Program
Development Loans
Horizontal and vertical financing for lot development and multi-unit projects.
Development loans fund land, horizontal improvements and vertical construction for subdivisions, townhome communities and multi-unit projects. These are larger, longer files, and the application collects the project detail we need to price them.
Bring your proforma, budgets, plan sets and appraisals if you have them. Interest reserve structures are available.
Horizontal and Vertical Financing
Development loans fund the full life of a project: land acquisition or payoff, horizontal improvements like grading, roads and utilities, and then the vertical construction of homes, townhomes or units. The loan is structured around the project timeline, with draws released as each phase completes and an interest reserve so the project carries itself until sales begin.
Because these files are larger and longer, the application collects the detail we need to structure them properly: lot counts, horizontal and vertical budgets, timelines per unit, absorption, the finished value and the members of the sponsoring entity. Bring your proforma, budgets, plan sets and any appraisals or purchase agreements and upload them with the application.
Best For
- Lot development and subdivision projects
- Townhome and multi-unit communities
- Builders with a track record of completed and sold units
What We Look At
- Land basis, horizontal and vertical budgets
- Lot values and finished project value (ARV)
- Timeline per unit and sales absorption
- Entity members, credit and experience
- Permit status
Have Ready
- Project proforma and budgets
- Plan sets and permit status
- Purchase agreement, if purchasing
- Member list with ownership and experience
FAQ
Development Loans Questions
What size projects do you fund?
From a handful of lots to full subdivisions and multi-unit communities. Tell us the lot count and unit count on the application and we will scope the structure.
Can the loan include an interest reserve?
Yes. Most development loans carry an interest reserve so there are no out-of-pocket payments until units start selling. You can also choose to make monthly interest payments.
Do you fund land that is not yet entitled?
Entitled and developed land is the core of the program. Unentitled land is considered case by case, usually at lower leverage, with the entitlement path as part of the plan.
How do I apply?
Choose your loan type on the Get a Quote page and complete the online application. It takes about 5 minutes. We review it, send terms, and once you accept we open the file and order title and insurance.
Do I need an LLC?
Investor loans are made to an entity, usually an LLC. If you do not have one yet, our Form Your LLC page will get you set up quickly, and the entity only needs to exist before closing, not before you apply.
Where do you lend?
Nationwide, with our deepest experience in Nashville and across Tennessee. Luxury and rural properties are welcome as long as the value is supported by comparable sales.
Available Nationwide
We fund this program in markets across the country. Local guides for our home region:
Other Programs