Construction Loans
When traditional real estate options don’t fit your unique needs, our construction loans offer a flexible and strategic alternative, allowing you to build and customize your property from the ground up with milestone-based funding and interest-only payments during construction.
Lending Overview
Construction Loans
Buying real estate is only one way for businesses to get the property they need. In some markets, the cost of real estate may even stop them from buying property altogether. When commercial real estate is just too expensive, it’s time to consider construction. Construction loans help businesses fund projects to build retail, office, and housing properties they can customize. Custom building is often necessary for companies with special HVAC, plumbing, and structural needs. Build a swimming pool, an industrial kiln, or a skate park with the right funding from our lender network. Construction loans are based on a set of milestones established with the lender. Then, the loans pay out as each milestone is completed. If the project needs to stop, the borrower isn’t on the hook for the full loan amount. Construction loans only charge interest while construction is ongoing. The full principal is due once the building is complete, but it can be refinanced into a commercial mortgage when the time comes. Find out more from your broker.
Smart Strategies
How to Effectively Apply Funds
Construction loans are, as the name implies, for funding construction projects. But you don’t have to start a project from scratch in order to get one. Construction loans are available for most projects and can be started at any stage of construction. Start with a land acquisition and development loan or use a construction loan to renovate an existing property. Installing sustainability features can qualify your project for special financing and tax incentives. Force appreciation of rental properties by installing amenities and upgrades. No matter what size your project is, there’s a construction loan to fit. Find out how to get the best offers on construction financing by speaking with a broker today.
Advantages of
Construction Loans
Loans make construction affordable.
Tiered financing funds each stage of your project.
Loans are available for land, building, and renovations.
You may qualify for tax incentives.
Our Values
We are dedicated to serving each client at the highest level.
Integrity
Innovation
Trust
Tailored Lending Solutions
Building Solutions for Diverse Construction Projects
Land A&D
Land acquisition and development loans are used to buy and prepare land ahead of construction. These loans cover tree removal, utility infrastructure, inspections, streets, and grading raw land. Whether you’re building a parking lot or a retail mall, our lenders have you covered with great deals. Contact a broker today.
Owner-Occupied
Owner-occupied construction loans can save you money on interest rates and taxes. As long as you plan to occupy the minimum percentage of space required by the loan, you can qualify for special financing. Rent out the rest to earn additional revenue. Find out more about owner-occupied loans by speaking with a qualified broker.
Term-to-Perm
Term to perm loans help you build property for long-term investing. These loans start as a term loan to fund construction. Once construction is complete and the loan principal is due, the loan can be rolled into a permanent mortgage. This makes it affordable to hold investment properties after they’re built. Ask a broker to learn more.
FAQ
Frequently
asked questions
Q. Why should I get a loan for commercial construction?
Construction can be expensive, requiring a high amount of capital from your business. Commercial construction loans take the load off, making it easier to afford building property without missing out on opportunities to grow your business. Ask a broker to help you find the loan that’s right for your business.
Q. How long is a commercial construction loan?
Commercial construction loans are typically for 18 months or less, but can be up to 30 years when you convert to a commercial mortgage. Most construction loans only cover costs until building has been completed.
Q. Can I use an SBA loan for construction?
Yes, both SBA 7a and 504 loans can be used to find construction. SBA loans have a 51% minimum occupancy for owner-occupied construction. Ask a broker to help you decide which loan is right for your next project.
Q. When is a construction loan not a good fit?
For smaller renovations or interior design details, a working capital line of credit may be a better fit. Lines of credit don’t require the extensive planning that construction loans do and can be available sooner. Ask your broker about alternative loans for your next project.
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