Commercial construction loans are financial products designed to fund the construction or renovation of commercial properties, such as office buildings, retail centers, industrial facilities, and more. These loans provide funds for the purchase of land, construction costs, permits, labor, materials, and other related expenses.
Key features of commercial construction loans include:
- Funding Stages: The loan is typically disbursed in stages as the construction progresses, ensuring that funds are available at various construction milestones.
- Interest and Repayment: During the construction phase, interest payments are typically required on the disbursed amount. After construction, the loan may convert to a long-term financing option or require full repayment.
- Collateral and Qualifications: Lenders often require the property being constructed to serve as collateral. Borrowers need to meet certain financial and credit qualifications to secure these loans.
- Terms and Rates: Loan terms, interest rates, and repayment structures can vary based on the lender, project complexity, borrower creditworthiness, and the overall risk associated with the construction.
- Loan Amounts: Commercial construction loans can cover a significant portion of the project costs, often up to a predetermined percentage of the total estimated project value.
- Loan Types: Common types include construction-only loans, construction-to-permanent loans (which transition to a permanent mortgage after construction), and renovation loans.
- Lender Types: Various financial institutions, including banks, credit unions, private lenders, and government-sponsored entities, offer commercial construction loans.
Understanding the nuances of commercial construction loans is crucial for developers, contractors, and investors looking to finance and complete successful commercial building projects. We are here to make sure that the loan is specific to your project and that you get the financing you need.
$100,000 to $500,000,000
Nationwide & International
Main-in-Line Properties: Multifamily, Track/Sub-Division Housing, Office, Mixed-Use, Retail, Medical Office, Warehouse, Self-Storage, Light Industrial, Strip Centers and Large Shopping Centers, etc.
Special Purpose Properties: Hotels/Motels, Gas Stations, Churches, Convenience Stores, Restaurants, Daycare Centers, Assisted-Living Facilities, Dry Cleaners, etc.
- 6, 12 or up to 24 months; 3, 5, 7, 10 year ARMs
- Mini Perms from 3 years to 30 years
- Interest only loans available
- No Prepay loans available
Full Documentation * Stated Income
Low conduit and traditional rates.
- LTV requirements that can reach 100% of the loan amount for various products.
- We’re your one stop source for getting your commercial deals done!
- Fantastic Wall Street rates and hard money loans.
Call today to find out more on our commercial construction loans.