Typical Chicago new construction terms
- Rates: 10.0%-12.5%
- Points: 1.5-3
- Max LTV: 70-80% of completed value
- Term: 12-18 months construction phase
- Permanent financing: Construction-to-perm options available
Frequently Asked Questions
Ground-up construction financing for residential investor projects — tear-down-and-rebuild, infill new construction, small subdivision development. Funds are drawn down on a schedule tied to construction milestones.
10.0%-12.5% with 1.5-3 points. Construction-specific underwriting reflects higher risk than standard fix-and-flip.
70-80% of completed value. Some lenders cap at lower LTV for ground-up vs. rehab.
12-18 months construction phase, often with built-in permanent financing option (construction-to-perm). Chicago construction timelines often run longer than initial estimates — plan for extensions.
Sometimes. Tear-down/rebuild can require pre-demo bridge financing; infill new construction is typically financed as a single construction loan from groundbreaking through completion.