Construction Financing for Semi-detached Homes

The borrower required financing to complete the construction of two semi-detached units on two separate lots. The challenge was structuring the financing to cover both builds and interest requirements, while allowing the first tranche to be advanced prior to severance. We provided a customized first mortgage solution that included a hard-cost facility and an interest reserve, providing the capital needed to complete the project while supporting cash flow during construction. Upon completion, one property will be sold to repay the loan, while the second will be owner-occupied with the basement tenanted and refinanced through a financial institution as part of the exit strategy.