Recently Funded Ground-Up Construction Loan In Columbus, Georgia

Loan Scenario:

This ground-up build features a new detached PUD home in Columbus, Georgia. Also, the builder is a seasoned investor who bought the lot for $150,000. Then, the total build budget came to $405,130. So, American Heritage Lending funded $471,860 at 85% Loan-to-Cost (LTC) and 58.11% Loan-to-After Construction Value (LTACV). As a result, the finished home has an After Construction Value of $812,000. The loan is also set up as a 12-month interest-only term, giving the builder room to manage the build.

First, the project starts with sand fill, land clearing, and site prep. Then, the builder moves to slab work and framing. Next, outside work includes brick, roof trusses, decking, shingles, and soffit and facia. From there, inside work covers drywall, walls, ceilings, doors, and trim. Also, the build includes new flooring, cabinets, counters, and plumbing. Last, a backup reserve is built into the budget for added room.

Columbus still draws buyer and builder interest, but new home supply stays tight. So, finished homes are well placed for steady demand. Also, Fort Moore staff, college students, and local workers all drive housing needs. As a result, builders who offer move-in-ready homes do well in this market.

Overall, this deal shows how American Heritage Lending backs seasoned builders with strong funding terms. The 85% LTC also pairs with a 12-month interest-only setup. So, the builder can focus on the build while keeping upfront costs low.