If you’ve ever tried to secure a construction loan through a traditional bank, you already know the frustration: lenders are eager to finance the finished product, but few are willing to take the risk on the build itself.
That’s where Hopkins Financial Services comes in.
For over 40 years, we’ve specialized in private money loans, offering solutions where banks hesitate—especially when it comes to construction financing. While conventional lenders shy away from ground-up projects, we work with borrowers and investors to provide the capital needed to bring those plans to life. But like any niche financing solution, there are trade-offs you need to understand.
Why Are Construction Loans So Difficult to Get?
Banks often view construction loans as high-risk. Delays, cost overruns, and market fluctuations can impact the final value of the project. As a result, many institutional lenders prefer to wait until the home or building is complete before stepping in with a permanent loan.
That leaves a major funding gap for builders, developers, and homeowners.
Hopkins Financial helps bridge that gap by offering short-term construction loans funded by private investors—loans that prioritize asset value and borrower equity over traditional bank underwriting.
What Makes a Hopkins Construction Loan Different?
Because we’re stepping in where others won’t, our construction loans operate a bit differently from a bank’s.
Here’s what to expect:
Private Funding with Quick Turnaround
Hopkins loans are backed by private capital. That means fewer hurdles, faster decisions, and more flexibility in structuring the loan to fit the project timeline.
Short-Term, Interest-Only Payments
Most of our construction loans are structured as 12-month, interest-only loans—giving you time to complete the project without the burden of full amortized payments.
Equity Requirement: Skin in the Game
We require 20% to 30% equity in the deal, based on total hard costs (land + construction). That equity can come in the form of cash, or by contributing land you already own free and clear.
For example:
If your total project cost is $600,000—say, $150,000 for land and $450,000 for construction—we’ll expect you to contribute $120,000 to $180,000. Even if the completed property is worth $800,000, Hopkins won’t finance 100% of the cost. Why?
Because equity matters.
If you’re not invested in the project, our private investors are left shouldering 100% of the risk—while you receive 100% of the reward. That’s not a balance we support.
What Happens After Construction Is Complete?
Ideally, once your project is finished and the value is established, you’ll refinance into a conventional loan with a lower rate and longer term. But if that’s not an option right away, Hopkins can also help transition you into a long-term private mortgage, giving you time to stabilize income, improve credit, or resolve other issues until you qualify for traditional financing.
Is a Construction Loan Right for You?
Construction loans through Hopkins are best suited for:
- Real estate investors and builders with experience in development.
- Homeowners building on land they already own.
- Borrowers who need fast approvals and flexible solutions.
- Clients with short-term funding gaps or unconventional financial profiles.
We lend on both residential investment and commercial construction projects, and we’re proud to offer creative solutions nationwide (subject to licensing requirements in your state).
Why Choose Hopkins Financial?
Hopkins Financial has funded over $1 billion in loans and real estate transactions since 1984. We’ve built our reputation by helping borrowers who don’t fit the traditional lending mold—offering smart, strategic funding when timing and flexibility matter most.
Whether you’re building a spec home, constructing a commercial space, or finally putting up your dream house, Hopkins may be able to help.
Ready to Build?
If you’re ready to discuss a construction loan or want to know if your project qualifies, give us a call at 208-HOP-KINS or visit www.HopkinsFinancial.com.
Let’s turn your plans into property.
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