Building Success

Construction Loans

Pay interest only during the loan term

Customize your space to your specifications

Loans cover permits, inspections, and assessments

Convert raw land to buildable property

Understanding Your Construction Loan Options

Lending Overview

When your business can’t find the real estate it needs to succeed, create it instead. Construction loans make buying and building the property you want affordable. With tiered financing that pays as you build, you’ll never get stuck with a full loan if your project hits a roadblock. Loans are available for land acquisition and development so you can prepare raw land ahead of construction. Whether you’re building investment properties, adding onto existing space, or reconfiguring interior walls, a construction loan can help. For the best construction financing, be sure to seek a local lender, one that understands the market where your property lives. As you build, you’ll only pay interest on the loan. Once your project is complete, you can pay the principal in one balloon payment or refinance into a commercial mortgage. Construction loans are meant as short-term financing to cover expenses while your project is underway. Term-to-perm loans convert to long-term financing when the job is complete.

Start Your Journey With Us

Get in touch today!

Strategic Use of Construction Financing

How to Effectively
Apply Funds

Where you start with construction financing depends on where your project begins. If you’re starting from raw land, you’ll need debris removal, grading, utility infrastructure, and all of the relevant permits and inspections. A land acquisition and development loan can help you buy the property and prepare it for construction. If your land has already been prepped, a ground-up construction plan with tiered financing can fund every stage of your project until you’re ready to cut the ribbon. Construction loans will work for smaller projects like upgrades and renovations too. Force appreciation on existing property by adding amenities that draw new clientele. Explore the possibilities with your broker.

Customized Solutions for Every Construction Project

Tailored Lending Services

Retail

Shopping centers and boutique retail spaces depend on the right environment to drive consumer traffic. When you utilize a construction loan, you control the environment and the narrative. Fund your next retail investment with an affordable construction loan from our network of reliable lenders. Your broker will show you how.

Office

Income-generating properties like office buildings can be a great investment when managed well. But to get started earning income from office rentals, you need to build them first. The short-term nature of construction loans means you can use income generated by the new property to pay the loan down faster.

Multi-Use

As communities redesign and rethink living spaces, structural designs adapt. Construction loans can be used to fund retail space at ground level with apartments above or an office complex with an attached parking garage. If you can imagine it, our knowledgeable brokers can find a way to finance it.

Our Expertise

FAQ

D
E
Q. Can I use a construction loan to build rental property?
Commercial construction loans are for commercial buildings, which are often residential, retail, and office properties. While multifamily housing construction can be funded with a commercial loan, residential home building can’t always be funded this way. Contact a broker to learn more about the differences between commercial and residential construction lending.
D
E
Q. What is an owner-occupied construction loan?
Owner-occupied loans are for businesses that want to occupy the finished property themselves. These loans are often less expensive than investment loans because borrowers are viewed as being more connected to the project. As long as you occupy the minimum space requirement set by the lender, the rest of the property can be rented out to other businesses.
D
E
Q. Can I afford construction if I have bad credit?
Yes, several types of construction loans are available to you, even if you have a low credit score or haven’t built a strong credit history yet. Ask your broker about SBA loans and asset-based lending.
D
E
Q. What does “mezzanine” financing mean?
Construction loans are often referred to as mezzanine loans, which means the loan pays out in tiers. Once your project completes stage one of construction, your lender releases funding for stage two and so on until you’re finished building. Payments are released for agreed upon milestones as you go. This type of financing protects you in case you’re unable to complete the project. If the unforeseen happens, you are only liable for the tiers that were financed, not the full loan amount. Speak to a broker for details.