CONSTRUCTION

Building projects can be an exciting way to expand your business. Designing and customizing features to-purpose ensures that you or your tenants will have everything they need. Our extensive lender network can help you customize financing as well, so you have the power to keep building.

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What is a Construction Loan?

A construction loan is a financial tool that helps building projects stay on track. It can cover expenses like land development, utility infrastructure, permits, and inspections, in addition to the structure itself. Before you apply, make sure you have a plan in place that includes an exit strategy. You’ll also need to make sure your contractors are appropriately licensed to work in your area.

A traditional loan can get you a large lump sum to cover your construction expenses. But, what happens if plans change? If you’re unable to complete the project, you’re on the hook for a substantial amount. Repaying the loan early could incur penalties. A construction loan will help you avoid this problem, because it pays out in increments, based on the work that’s been completed. You and your lender will agree to a series of milestones. Once one milestone is reached, funding will be released for the next one. This way, if something goes wrong, you only need to pay back the milestones that have been funded.

Land Development

Raw land must be prepared before buildings can go up. Grading, leveling, environmental assessments, and road construction all have to happen before construction begins. Let one of our lenders finance this initial stage of your project.

Ground-Up

Once the land is prepared, it’s time to pour the foundation. A construction loan can be used to fund everything from the ground up so that your building is perfect. Utilize our lender network to find the right loan for you.

Renovation

For buildings that need a little TLC, a construction loan can fund renovations. Expand interior space, add a second level, or make repairs with the help of our lenders.

ADVANTAGES OF

CONSTRUCTION LOANS

Financing can be used for any stage of construction.
Milestones help keep construction on track.
Make interest-only payments while construction is ongoing.
Construction loans can transition into long-term financing.

When is a Construction Loan not a good fit?

A standard construction loan may not be a good fit if you’re considering serving as your own general contractor. In this case, you’ll want to secure a specialized loan called an Owner-Builder Construction loan. If you have proven experience as a contractor, we can help you find the perfect loan for your project.

When does a Construction Loan mature?

Maturity dates will depend on the loan and the lender. Loan terms can be anywhere from five years to twenty years, with a longer amortization period.

Where can I get a Construction Loan?

You can find construction loans from many sources: credit unions, private lenders, and the SBA are just a few. We have connections with all types of lenders who can get you the funds you need at the right rates.

Will I need a down payment for a Construction Loan?

In most cases, yes, you will be asked to make a down payment. A standard amount is 20% of the loan value. If you need a lender with different requirements, let us know and we’ll connect you.