New Construction Loans in Washington, DC, Including First-Time Builders
RevitaLending funds new construction of 1 to 4 unit investment properties in Washington, DC, from $250,000 to $2M at up to 85% loan-to-cost and 75% of after-repair value, and all experience levels are considered, including first-time builders. We also step into stalled builds by paying off the existing lender. We are a direct lender using our own capital, lending since 2007: written approval in 24 hours, no minimum FICO and an inspection instead of an appraisal.
Photo: Ser Amantio di Nicolao, CC BY 3.0, cropped
DC New Construction Loan Terms
One loan covers the build, released in draws as the work goes up. The team that approves your loan is the team that funds it.
- Loan size
- $250,000 – $2,000,000
- Rates (as of 10/26)
- Generally 10.49% – 12.99%, subject to underwriting
- Leverage
- Up to 85% loan-to-cost and up to 75% of after-repair value (LTARV), whichever is lower
- Term
- 12–18 months, interest-only
- Experience
- All experience levels; first-time builders considered
- Property
- 1 to 4 units, non-owner-occupied investment property only
- Stalled builds
- We pay off the existing lender and fund the remaining work through draws
- Approval
- Written approval within 24 hours
- Draws
- Funded 24–48 hours after inspection
- Valuation
- No appraisal. We inspect the property instead
- Credit
- No minimum FICO. No tax returns and no debt-to-income ratio. Credit is still reviewed
- Prepayment
- No prepayment penalty; 3-month minimum interest
- Exit
- Sale, or refinance into our DSCR rental loan
Business-purpose loans on non-owner-occupied investment property. We never lend on a home the borrower lives in or plans to live in. Terms are subject to underwriting and change. Not a commitment to lend.
First-Time Builders Are Considered
All experience levels are considered, including first-time builders. You don’t need a record of finished ground-up projects to apply. Tell us about your general contractor, your architect and any projects your team has completed, because the team is part of how we look at the project.
Build Stalled? We Can Step In
We step into builds that have stalled. Our loan pays off the existing lender and funds the remaining work through draws, which are funded 24 to 48 hours after inspection.
What to send for a stalled build
- Your building permit and approved plans, and whether the permit is still active
- A summary of the work completed so far, with photos
- The budget to finish, line by line if you have it
- A payoff statement from your existing lender, and any other liens on the property
- Your general contractor and the timeline to completion
- Your exit: sell, or refinance and hold
If the permit has lapsed or the plans have changed, check with DC’s Department of Buildings early, since that can affect the schedule.
Building in the District: What to Plan For
Building permits in the District are issued by the Department of Buildings (DOB). Plan permitting time into your schedule before the build starts.
Tear-down and rebuild
Taking an existing building down requires a raze permit from DOB before construction starts. On attached rowhouses, work that affects a party wall brings in the neighbors, so plan that time too.
Historic districts
In a historic district, new construction and demolition go through historic preservation review. Ask the Historic Preservation Office early and build the review time into your plan.
Accessory apartments
DC zoning generally requires the owner to live in the main house or the accessory apartment. That makes the property owner-occupied, so we can’t finance it.
1 to 4 units
We finance new builds of 1 to 4 units, built to sell or to rent. Buildings of 5 or more units are outside this program.
General information, not legal or zoning advice. Rules change and every lot is different, so confirm zoning and permit requirements with DOB, the Office of Zoning and your architect or attorney.
How Construction Draws Work
Budget at closing
We agree on the construction budget and draw schedule when the loan closes.
Inspection
As work is completed, we inspect it before releasing the next draw.
Funded in 24 to 48 hours
Draws are funded 24 to 48 hours after inspection, so your crew keeps moving.
Sell It or Keep It as a Rental
Sell the finished home
Sell the completed property and pay off the loan. There is no prepayment penalty. A 3-month minimum interest applies, so a payoff before month 3 still pays 3 months of interest.
Refinance into a DSCR rental loan
If the finished property rents better than it sells, our DSCR rental loan (up to $3M) can pay off the construction loan so you hold it long term. DSCR qualifies on the rent and requires an appraisal.
What to Send Us
We lend throughout the Washington DC metro area: Washington DC, Maryland and Northern Virginia. Surrounding neighborhoods are considered case by case.
- The lot address and whether you own it, finance it or have it under contract
- Your permit status and plans
- The construction budget, line by line if you have it
- Build timeline and the expected completed value
- Your general contractor and any projects you have completed
Related: new construction loans across DC, Maryland and Virginia, DC hard money loans, DC fix and flip loans and recently funded loans.
DC New Construction Loan Questions
Who does new construction loans for investors in Washington, DC?
Do I need construction experience to get a DC construction loan?
Can you take over a DC build that is already under construction or stalled?
Do I need an appraisal or a minimum credit score?
How much can I borrow on a DC new construction loan?
How fast can you approve and fund?
Can I finance an accessory apartment as an investment?
How do I exit the construction loan?
Where do you lend?
Building in DC?
Send the lot, the plans and your budget. Written approval within 24 hours.