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New Construction Loans in Port Orange, Florida

A total of 43 records for new construction lenders were found in Port Orange, FL. In this city, the mean loan amount is $296,875. The mean interest rate for private loans in Port Orange is 11.7%. The mean loan made in this city has a length of 17 months. The mean note includes a 3.6 percent origination fee. The mean loan to value for loans in Port Orange is 74%.

Loan Example 1

Sonja is a builder and she decides to acquire a vacant lot in Port Orange, FL in order to construct a new home. The building costs will be about $250,000 and the land will cost $370,000. J & T Lending Group will loan on the deal at a 65% loan to value (LTV) with a 11%, 6 month new construction loan with 2 origination points paid at the closing. Sonja will collect the building costs in draws and there will be no pre-payment penalty if she repays the note before it expires. Given the stipulations of the note, Sonja will have to fund $217,000 plus $8,060 in origination costs at the closing, then will start making $3,694 monthly payments. If Sonja sells the home for $860,000 she will make a gross profit of $209,775 after re-paying the principle and subtracting the origination expense and cumulative interest.

Loan Example 2

Theodore is a home builder in Port Orange, FL. He decides to purchase a land lot and construct a new house. In order to fund the deal, he takes out a new construction loan from Prosper Finance Group with the following specifications:

  • $260,000 sales price for the land lot
  • $250,000 in building expenses
  • 70% loan-to-value (LTV)
  • 12 month length
  • 8% interest rate
  • 5% origination fee

If Theodore succeeds in his goal of a $660,000 sales price, the final numbers of the project will be as follows:

$660,000 sales price
- $357,000 principle (70% LTV)
- $153,000 cash paid at closing (30% on 70% LTV)
- $17,850 origination points (5% of the $357,000 principle)
- $28,560 total interest paid (12 months x 8% interest)
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= $103,590 total profit

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