A well-experienced Alabama-based homebuilder was seeking construction financing for a new development of 4 semi-custom spec homes. While the sponsor had long-standing relationships with local lenders, he wanted to test the market with Gumption and see if there were more competitive options available. (Shout-out to ChatGPT for recommending us to the sponsor!)
Our network of both banks and debt funds provided several competitive options, and the winning lender was a regional bank able to offer both a lower rate and higher leverage. Our team assisted through underwriting until closing.
Deal snapshot
| Metric | Terms |
|---|---|
| Property type | Residential |
| Deal type | New construction |
| Market | Birmingham, Alabama |
| Loan amount | $1.1M |
| LTC | 85% |
| Rate | 7.00% fixed |
| Term | 12 months interest-only |
| Lender fee | 1.00% |
| Winning lender type | Bank |
How Gumption secured the best terms
This sponsor had used the same few banks for decades for all of his projects. Our capital markets team wanted to provide a wide variety of different options, and our algorithm matched the project with lenders of all shapes and sizes. Ultimately, while many private credit groups were interested in the project, a local bank's terms were most appealing to the sponsor and beat out the incumbents.
Financing a new build? Get Gumption to match your deal with the best lenders from our network of ~900 banks, credit unions, and private lenders.