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Construction Loans

When you need real estate property to fit just right, it’s time to think about a construction loan. Fund your project from the ground up or make adjustments to an existing property.

What is a Construction Loan?

Despite best estimates, construction doesn’t always go as planned. That’s why we offer loans specifically designed to address the needs of building projects. One of our lenders will help you break the project down into milestones. When your contractors reach one milestone, funding is released for the next. Rather than being on the hook for a full loan if something goes wrong, you only need to pay back the milestones that were funded.

With a construction loan, you can pay for land development, utility infrastructure, renovations, or refinancing. Make sure you have a detailed plan in place, authorized contractors, and your business’s financial records in order before applying. The more complete your documentation is, the faster the loan application will be processed. If you have questions about how to apply, our professional staff can help you with a checklist.

Types of Construction Loans

SBA

The Small Business Administration helps small for-profit businesses in the United States get construction loans. You can get 90% of your project costs funded with an SBA 504 loan and potentially more with an SBA 7(a) loan.

Hard Money & Bridge Loans

A hard money loan can be approved quickly so your project can get off the ground in the near term. This short-term financing solution can last a few years. Once the term ends, you can repay the loan or transition to long-term financing.

Refinancing

If you’re stuck in a loan with a high interest rate, free up cash for your business by refinancing. You can get a new loan with better rates and use it to pay off the old one. Paying off the old loan will reflect well on your business’s credit history and give you more money to put into other aspects of your business.

Advantages of Construction Loans

  • Some loans are interest-only while construction is underway.
  • Get funding for any stage of construction.
  • Pay back only the milestones that were funded.
  • Use equity to secure a loan with a lower interest rate.

Frequently Asked Questions

When is a Construction Loan not a good fit?

If you decide to forego the contracting process and build the project yourself, you’ll want a specialized type of construction loan called an owner-builder construction loan. Our extensive lender network allows us to match any construction needs with financing that fits.

Can a Construction Loan cover residential property?

Construction loans are typically taken out by corporations and business entities to fund investment or owner-occupied property projects. If you’re looking to build a single-family residential property, we can help you find a more suited loan.

What are interest rates on Construction Loans?

The interest rate will vary depending on the cost of the construction, the value of the completed real estate, your business’s credit history, and how much you offer as a down payment. In general, these rates are between 4% and 15%.

What does owner-occupied mean?

For business construction loans, some lenders want your business to occupy at least 51% of the building you’ll be financing. If you are building or modifying a building for resale, we’ll find a lender who will work on your terms.

Our Process

Consultation

Placement

Funding

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