Construction Loans
Construction Loans
Lending Overview
The high cost of commercial real estate in some markets makes it too expensive to buy property. It is often cheaper to build the property you want instead. Constructing real estate allows you to install the features you want, take advantage of tax incentives, and attract buyers. Construction loans cover expenses like permits, land acquisition, materials, labor, and renovations, making building affordable. Construction loans are not structured like commercial mortgages. Rather than providing a lump sum upfront that you have to manage throughout the project, construction loans pay out in increments called milestones. As work is completed on one milestone, funds are released for the next one. This makes it easier to adjust as you work and means you will not get stuck with the full loan if plans do not work out. Our brokers have extensive experience connecting businesses with affordable-rate construction loans. Let us put our expertise to work for you.
How to Effectively Apply Funds
Maximize the impact of your construction loan by strategically aligning fund disbursements with critical project milestones, ensuring financial fluidity and project continuity.
Construction loans are short-term loans that help fund the cost of building new property. But, they can also be used to renovate existing structures. Businesses work with their lenders to determine a set of project milestones based on the plans and contractors involved in the project. As the project progresses, the loan pays out based on the predetermined milestones. Because things do not always go to plan, the borrower only owes on the milestones that have been paid, not on the full loan amount. While construction is ongoing, the borrower only pays interest. The principal on the loan is not due until the building is complete. Ask a broker to learn more.
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OUR SERVICES
Customized to Meet Your Unique Goals
Retail
When you are in the retail business, location is key. But you cannot always find the right property in the right location. That is when it is time to build it yourself and create a customer experience they cannot get anywhere else. Ask us how to get a construction loan for retail property today.
Multi-Family
Construction loans cover the cost of building apartments, condos, subdivisions, and mixed-use properties. In turn, those properties start generating revenue that can pay off the loan in a short amount of time. If you are looking for a great rate on a commercial loan to start your next multi-family project, let our brokers guide you.
Office
Whether you want a headquarters for your business, earn income from tenants, or both, we will help you get the right construction loan so you can customize the space just the way you want. Talk to our brokers about affordable rates on construction loans for term and term-to-perm financing.
Advantages
Unlock the potential for significant cost savings, increased flexibility, and enhanced control over your project with our construction financing solutions.
Covers the Cost of Building Property
Can Convert to a Long-Term Mortgage
Protects Against Project Failure
Interest Only During Construction
FAQ’s
Got Questions? We Got Answers!
Q. Do construction loans cover land and development?
Some construction loans can cover the cost of preparing land before building, but in most cases, companies will use a land acquisition and development loan. These loans cover expenses like surveys, grading, leveling, and utility infrastructure. We offer great rates on A&D loans as well as construction financing. Ask us to find you the best deal.
Q. Can I use a construction loan to renovate a property?
Yes, construction loans are often used to help companies fix and flip properties as well as expand real estate they already own. We’ll help you determine costs and find the right-sized loan for your next renovation project.
Q. Who has the best rates on construction loans?
Construction loans aren’t one size fits all. That’s why we take the time to listen to our customers and match them with the ideal lender. Your rate will depend on the type of loan you need, the purpose of the final project, and your credit history. Ask us to help you discover the loan that’s right for you.
Q. When is a construction loan not the best fit?
For smaller projects, like interior design renovations, you may not need to take out a full construction loan. You may find a line of credit or working capital loan easier to get and more useful for your needs. Talk to a broker about getting the right size loan for your project.
