All loans are interest only and the loan will service the debt by using an interest reserve which is established at closing.
Prime based products are based on a spread over the Prime Rate of Interest and currently have a floor of 6%. These rates will only be offered to qualified borrowers and will of course require good credit and full documentation.
Other programs with higher rates may be more suited to borrowers who require speed and ease of closing and who require more flexible underwriting requirements.
Money is advanced as needed and your monthly payment is based on the amount of money you are using at any point in time.
Borrowers should have ample liquidity or additional collateral to pledge during the construction phase. A typical program could offer you up to 70% LTC but there are many other factors which go into determining your loan amount.
All loan submissions require a construction budget including both hard and soft costs and a projection of rental income and expense for the property as completed.