Arctic-blue fintech view of staged draws, collateral coverage, and build-to-payoff economics — 15% construction interest (drawn capital only) + time-weighted 5% exit premium (APR) due at payoff.
Loan Amount
$300,000
Per home (typical)
Draws
3x
$100,000 each
Collateral Value
$390,000
Target at completion
Term
6 mo + 30d
Repay at completion + 30 days
OPM IRR
21.1%
Annualized (illustrative)
Three equal advances, completion at month 6, then payoff at month 7(completion + ~30 days). Payoff includes principal + accrued interest (drawn only) + a time-weighted 5% exit premium (APR) based on average outstanding capital.
Draw 1
$100,000
M0
Draw 2
$100,000
M2
Draw 3
$100,000
M4
Completion
Construction complete
M6
Payoff
$325,000
M7
Draw Amount
$100,000
3 equal installments
Interest
15% APR
On drawn principal only
Exit Premium
$6,250
5% APR on outstanding (time-weighted)
Total Payoff
$325,000
At month 7
Interest and exit premium accrue on outstanding principal after each draw, continuing through the payoff lag. Table shows each monthly period and the accrual amounts.
| Period | Beginning | Draw | Ending | Interest | Exit Premium | Cum. Interest | Cum. Exit | OPM Cashflow |
|---|---|---|---|---|---|---|---|---|
| M0 → M1 | $0 | +$100,000 | $100,000 | $1,250 | $417 | $1,250 | $417 | ($100,000) |
| M1 → M2 | $100,000 | — | $100,000 | $1,250 | $417 | $2,500 | $833 | — |
| M2 → M3 | $100,000 | +$100,000 | $200,000 | $2,500 | $833 | $5,000 | $1,667 | ($100,000) |
| M3 → M4 | $200,000 | — | $200,000 | $2,500 | $833 | $7,500 | $2,500 | — |
| M4 → M5 | $200,000 | +$100,000 | $300,000 | $3,750 | $1,250 | $11,250 | $3,750 | ($100,000) |
| M5 → M6 | $300,000 | — | $300,000 | $3,750 | $1,250 | $15,000 | $5,000 | — |
| M6 → M7 | $300,000 | — | $300,000 | $3,750 | $1,250 | $18,750 | $6,250 | — |
| M7 Payoff | — | — | — | — | — | — | — | $325,000 |
Drawn capital steps up in three equal installments. Collateral value stays higher and builds to $390,000, then holds through payoff.
Construction Interest
15% APR
Accrues only on advanced capital
Exit Premium
5% APR (time-weighted)
Accrued, due at payoff
Repayment Trigger
Completion + 30 days
Principal + accrued + premium
Visual allocation of collateral value — lot, materials, labor, soft costs, and market cushion — totaling $390,000.
Illustrative payoff if repaid at payoff date (completion + ~30 days): principal + accrued 15% interest on drawn capital + time-weighted 5% exit premium (APR) on outstanding capital.
Accrued Interest
$18,750
15% APR on drawn principal only
Exit Premium
$6,250
5% APR, time-weighted on outstanding capital
Total Payoff
$325,000
Principal + interest + exit premium