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Illinois New Construction Loans

A total of 13 records for construction private money lenders were found in Illinois. The average amount for loans is $302,974. Rates on loans made to Illinois borrowers average about 10.7%. The average length for notes is 14 months. The average note includes a 2.8 point origination cost. Lenders typically offer a 74% LTV on loans in Illinois.

Loan Example 1

Maggie wants to purchase a vacant lot in Blue Island, IL and build a new house and sell it. Maggie expects that the building costs will be about $150,000 and the plot costs $340,000. South End Funding Company will contribute to the project at a 70% loan-to-value (LTV) with a 13%, 18 month construction loan with 2 origination points to be paid at closing. Building fees will be paid out in multiple draws and there will be no pre-payment penalties assessed. According to the specifications of the loan, Maggie will need to pay $147,000 plus $6,860 in origination costs at the closing, then will begin making $3,716 monthly payments. Maggie 's goal is to sell the home for $610,000. If she succeeds, she will pocket a total profit of $46,255 after subtracting all expenses ($343,000 principle, $147,000 cash down, $6,860 origination charges and $66,885 for 18 months of payments).

Loan Example 2

Mike wants to buy a land plot in Carol Stream, IL to build a new duplex in order to sell it. Because he doesn't have enough money to fund the total project, he obtains a construction hard money loan from Flourish Lending with these stipulations:

If his achieves a $710,000 sales price after the 18 month term, the numbers for this deal will be as follows:

$710,000 sales price
- $245,000 principle on note (50% LTV)
- $245,000 cash paid at closing (50% on 50% LTV)
- $12,250 origination fee (5% of the $245,000 principle)
- $47,775 total interest paid (18 months x 13% interest)
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= $159,975 net profit

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