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New-construction completion and cash-out loans
Banks say “we don’t lend on partial completions”, or “come back with a certificate of occupancy”. So you are stuck between an unfinished house and a set of lenders who will only talk once it is finished.
- Scope
- Available as a business-purpose loan in any state; the consumer version I originate in select states. Outside those states I can introduce you to a licensed colleague at NEXA Mortgage, LLC.
- Best if
- the build is nearly finished and the money or the loan term ran out.
- Not for
- a project still at the foundation. That’s ground-up construction.
- First step
- Send where the project actually stands, percent complete, what is left, and the terms of the loan you are on now.
Financing for a new-construction home that is already 80–95% built, either to fund the final stretch to completion, or to replace the construction loan with permanent or bridge financing once it is done.
Who completion and cash-out financing is for
Owner-builder out of money near the finish
Home is 80–90% done, draws are gone, and the final trades and punch list are unpaid.
Veteran finishing a self-build
Near completion or freshly issued a CO, wanting to move into permanent financing and use VA benefits. Occupancy is required, though a 2–4 unit where you live in one unit can work.
Spec builder with a maturing note
One spec home at 85–95% complete, construction loan maturing, house not sold yet.
Build-to-rent investor
Ground-up rental nearly done on a hard-money loan, with no long-term takeout product behind it.
Non-resident finishing a US build
Project near completion, permanent financing needed, and no US credit file to lean on.
How completion and cash-out financing works
- 01
Send where the project actually stands, percent complete, what is left, and the terms of the loan you are on now.
- 02
Completion and takeout financing gets structured case by case rather than off a single checklist.
- 03
This typically replaces or bridges the maturing note rather than stacking on top of it.
- 04
Whether the file is consumer or business-purpose depends on occupancy. I confirm which lane you are in first.
Questions about completion and cash-out financing
I already have a construction loan, isn’t it too late to bring in someone else?
Not necessarily. Completion or cash-out financing mid-project gets structured differently case by case. Worth a look at your specific file before assuming it’s off the table.
My credit took a hit while I was cash-strapped finishing this.
Worth reviewing rather than guessing. Eligibility reads the whole picture, and a stretch during construction is a common enough story that it is not automatically the end of the file.
I don’t want to stack another loan on top of this one.
This would replace or bridge the maturing note rather than stack on it. Structure depends on your specific deal.
My hard money lender said he’d just extend me.
Extensions usually cost more than a permanent takeout does. Worth comparing the two side by side before you renew.
Will I qualify without W-2 income?
On the investment side these generally look at the property’s rent potential rather than your personal income. Eligibility varies by scenario.
I thought VA was only for buying a house, not something like this.
Most people assume that. There are VA options for refinancing into permanent financing once a self-build is complete. Eligibility varies by scenario, so let’s look at your file.
Related reading
All guides →Send this scenario
Tell me the property and the plan and I’ll come back with what’s eligible. Eligibility and terms vary by scenario.