Bridge & Construction

Dutch vs. Non-Dutch Rehab Interest Accrual

Whether interest on a fix-and-flip or construction loan is charged on the full committed loan amount (Dutch) or only on drawn funds (Non-Dutch).

Underwriting Formula / Rule
Non-Dutch Monthly Interest = (Disbursed Principal to Date) × Monthly Note Factor.

Detailed Credit-Committee Impact & Thresholds

Under Non-Dutch interest (drawn-balance interest), the borrower only pays monthly interest on the acquisition funds and rehab draws actually disbursed to date. Under Dutch interest, interest accrues on the entire committed loan + rehab reserve from Day 1.

2026 Wholesale Benchmark: Loan Daddy LLC prioritizes Non-Dutch (drawn-balance) wholesale RTL shelves for heavy rehab projects.

Related Underwriting Terms

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Dutch vs. Non-Dutch Rehab Interest Accrual — Underwriting Definition & Formula | Stephen R. Mannenbach, J.D., MBA | Stephen Mannenbach