Loan Scenario:

American Heritage Lending funded a $2,084,413 ground-up construction loan as a refinance on a single-family detached home in Henrico, Virginia, giving an experienced builder the capital to complete a high-end custom home in the Richmond suburbs. The land carried an as-is value of $950,000, and the finished project is valued at a $3,001,000 after-repair value. Specifically, a $1,636,634.80 construction budget funds the build, and AHL structured the deal at 81.69% loan-to-cost and 69.46% loan-to-ARV, keeping leverage grounded in the completed value. The loan closed on a 12-month interest-only term as a True Zero Point Loan, so the borrower paid no origination points at closing. Because it is interest-only, carrying costs stay light while the build runs, and the borrower, who already holds four properties, has the room to focus on execution.

The scope of work is a full ground-up sequence. First come permits, the erosion-control and stormwater plan, engineering, surveying, and inspections. Then excavation, clearing, footers, and the temporary drive go in, followed by the masonry foundation, backfill, and slab. Next, framing materials and labor raise the structure, with termite treatment, the fireplace, and roofing to follow. From there, exteriors such as the garage, siding, brick veneer, and gutters go on, and HVAC, plumbing, electrical, water service, septic, and insulation are run. Finally, finishes complete the home: drywall, hardwood flooring, interior and exterior paint, trim, cabinets, counters, vanities, and carpentry.

Henrico County wraps around Richmond on three sides and has become one of central Virginia’s strongest suburban markets. Major employers such as Capital One’s West Creek campus, Markel, and Performance Food Group anchor the local economy, and the affluent Short Pump corridor drives demand for new, high-end housing. That combination of corporate employment and upscale suburban growth supports the resale market a home at this price point needs.

Overall, this deal shows how American Heritage Lending backs professional builders with practical construction financing. A high-leverage, point-free structure and an interest-only term give the builder room to complete an ambitious custom home and exit into a strong suburban market.

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