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How Does This Work?
310 – 714 – 5616

Loan Application

First, call and speak with one of our licensed senior loan officers to begin the application process. We will conduct a quick phone interview to get a better understanding of your needs and quickly move to the application process.

Loan Approval

Immediately following your application we begin the approval process. Our staff will work diligently to find the loan programs that best suit your needs and goals. We usually have an answer within 72 hours!


Once we’ve completed the approval process, you’re ready to fund your new loan. After you’ve completed signing the loan documents they will be returned to our funding department.

Ground Up Construction Loan

From $1,000,000 to $20,000,000

How do I get a construction loan?

Construction Loan

Your first step in securing a construction financing should be to talk to City Capital Realty financial advisor. The amount you may borrow will be an important part of your discussions with your builder in deciding what to include in your new home. An advisor can also answer your questions about how construction loans are structured.

  1. To get qualified, you will need to provide your basic debt, income and asset information
  2. To apply for a construction loans, you will need to have a signed construction or purchase contract with your builder or developer.The contract will detail certain aspects that will impact your loan, such as:
  3. Contract amount, which includes construction and cost of land, if applicable
  4. Construction start and completion dates
Banks needs to know more information about land acquisition and future development projects.
  1. Where is the property located?
  2. How much was the purchase price?
  3. When was the property acquired?
  4. Copy of closing statement and HUD-1 is required.
  5. What type of project will be built on this location?
  6. What is the size of land?
  7. How much of land is flat, slope or hilly?
  8. What is the result of geological test report?
  9. Is the land project next to commercial building, gas station, body shop, mechanic shop, or possibly close to a contamination site?
  10. Phase I or II report is done on the subject land.
  11. Who is going to built the project?
  12. Contractor resume, license, and property insurance is required.
  13. How much will it cost to build this project?
  14. Borrower will have enough equity in the project to satisfy the needed requirement.
  15. Appraisal report will be ordered by the lender to find out the profitability and feasibility of the project.
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Borrower’s financial resources and experience play important role
  1. Does the borrower shows enough income on his personal tax return to continue to support his existing obligation in addition to new commitment during short-term process of this transaction?
  2. Does the borrower have an adequate cash reserves for paying the initial cost of obtaining plan and permits and also pay the monthly mortgage payment along with property tax and other expense associated?
  3. Borrower is familiar with process of obtaining plan and permits and plan check.
  4. Does the borrower have a track record of land acquisition and development in the past?
Lot/Land Loan

First find the good location to build your dream property. Lot loan is the right loan if you are looking to purchase a commercial or residential lot to build. Once you have purchased your land, you will have time to make the basic decision and choose a contractor. Location may be one of the most important factors to consider.

How lenders and Financial Institutions calculate equity in the Construction Project?

What is a finished lot?

A finished lot refers to a portion of land that already has road access and utilities in place. Additionally, it has been approved by the city or county as a separate parcel of land on a parcel map.

What insurance is required for a construction – to permanent loan?

1. Course of Construction

This is an all risk insurance policy covering fine, extended coverage, builder’s risk, replacement cost, vandalism.

2. Workers Compensation Policy

This covers the site supervisor, subcontractors, and others will be working on your property.

3. General Liability Insurance

As an owner/builder, you are required to provide a minimum amount $500,000 for each occurrence.

4. Flood Insurance

You are required to have flood insurance if your property is being built in an area that the federal government has identified as a Special Flood Hazard Area.

How lenders and Financial Institutions calculate equity in the Construction Project?

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Example: 1

If you purchased a land for $2,000,000 and construction cost will cost another $2,000,000 so the total construction project cost would be $4,000,000 you need to put 50% of your money as down payment that will be $2,000,000 and you can borrow the balance of $2,000,000 in order to finish the project. In today’s financial market this is the rule of thumb which most of the lenders are requesting.

Example: 2

If you intend to purchase a land that doesn’t have plan and permit, basically you temporary want to apply for land loan only. Some lenders are willing to extend a loan up to 50% of total price for a short-term period. So on this case you need to come up with $2,000,000 of your money as a down payment.

If you are planning to build a construction project but you don’t have plan and permit available immediately, you need to buy the land with 50% down payment and close your transaction. And after you obtained complete plan and permit, then you need to apply a new construction loan. On these scenarios your initial cost will be a little bit more but you don’t have any choice and this is how it works.

The interest rate for land loan is based on prime rate plus a margin and term will be between two to five years period.

Usually, when you apply for construction loan, you don’t have to make any monthly mortgage payments. In the initial cost breakdown that you are submitting to the lender, the interest reserve, insurance, property tax, closing cost, Escrow, title, appraisal, Phase I report, permit fee, architectural design fee and actual building cost (which includes hard + soft cost) is included.

Most lenders may require a Phase I environmental report or geological report to make sure that the land isn’t contaminated and dirt is strong enough.

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Loan Parameters

Amount: $1,000,000 min

Amount: 60% Loan to Cost

Term: 18 Months

Rate: Prime Rate Plus Margin

DCR: 1.25

Permit fee must be paid in advance.

Land must be free and clear.

Construction Type
  • Condominium Project
  • New Commercial property
  • Apartment project
  • Industrial Building
  • Office
  • Medical

Why Choose Us?
310 – 714 – 5616

Minimal Documentation

City Capital Realty offers ground up construction with minimal documentation. 

Experts in Hard Money Loans

City Capital Realty has been in business for over 20 years. We have funded over $100 million in loans, and have relationships with hundreds of lenders and investors. This gives us the ability to say YES and fund your loan quickly at the lowest rate possible.

Get Results
  • We can close your loan as soon as we receive all the information
  • Guaranteed lowest rates!
  • Over 20 years of experience.
  • Evening and weekend appointments

310-714-5616 We will be with you until the life of the loan

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