Borrower Requirements
Equity, experience, and entity requirements for borrowers.
Borrower Equity Requirements
Minimum equity contribution needed from borrowers
Borrower Type
Standard
Minimum Equity
20% of total project costs
Notes
Required at closing
Borrower Type
Experienced
Minimum Equity
15% of total project costs
Notes
Must have completed similar projects
Borrower Type
Premium
Minimum Equity
10% of total project costs
Notes
Extensive experience required
Borrower Type
Standard
Minimum Equity
20% of total project costs
Notes
Required at closing
Borrower Type
Experienced
Minimum Equity
15% of total project costs
Notes
Must have completed similar projects
Borrower Type
Premium
Minimum Equity
10% of total project costs
Notes
Extensive experience required
Experience Requirements
Prior experience needed for new construction loans
Experience Level
Standard
Requirements
At least 1 completed project
Documentation
Project details, photos, financials
Experience Level
Experienced
Requirements
3+ completed projects
Documentation
Portfolio of projects, references
Experience Level
Premium
Requirements
5+ completed projects
Documentation
Comprehensive portfolio, track record
Experience Level
Standard
Requirements
At least 1 completed project
Documentation
Project details, photos, financials
Experience Level
Experienced
Requirements
3+ completed projects
Documentation
Portfolio of projects, references
Experience Level
Premium
Requirements
5+ completed projects
Documentation
Comprehensive portfolio, track record
Entity Requirements
Requirements for borrowing entities
Entity Type
LLC
Requirements
Properly formed, good standing
Documentation
Articles, operating agreement, EIN
Entity Type
Corporation
Requirements
Properly formed, good standing
Documentation
Articles, bylaws, corporate resolution
Entity Type
Partnership
Requirements
Properly formed, good standing
Documentation
Partnership agreement, authorization
Entity Type
Trust
Requirements
Properly formed, trustee authority
Documentation
Trust agreement, trustee certification
Entity Type
LLC
Requirements
Properly formed, good standing
Documentation
Articles, operating agreement, EIN
Entity Type
Corporation
Requirements
Properly formed, good standing
Documentation
Articles, bylaws, corporate resolution
Entity Type
Partnership
Requirements
Properly formed, good standing
Documentation
Partnership agreement, authorization
Entity Type
Trust
Requirements
Properly formed, trustee authority
Documentation
Trust agreement, trustee certification
Real-Life Scenario: First-Time Developer
How experience requirements affect loan terms
Scenario
A first-time developer wants to build a single-family home. They have experience in real estate but have never completed a ground-up construction project.
Solution
The developer is classified as "Standard" and must contribute 20% equity. They also need to hire an experienced general contractor who meets The G1 Group's requirements.
Outcome
The loan is approved with a 70% LTV and 75% LTC maximum. The developer contributes the required 20% equity and works closely with their approved general contractor to ensure project success.