Construction Loans

Propel your construction projects forward with our versatile Construction Loans. Whether starting from scratch or enhancing existing structures, our financing options are crafted to support your project from the ground up.

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Basics

Understanding Construction Loans

Construction Loans provide the necessary capital to fund the building or renovation of real estate properties. These loans cover project costs before long-term financing is secured, which is ideal for developers and investors focused on residential and commercial properties.

Loan Varieties

Term-to-Perm

These loans transition from helping you manage the costs during the construction phase to becoming a traditional, permanent mortgage once construction is completed.

Ground-Up Construction Loans

These loans are perfect for projects starting from undeveloped land, offering the financial backing to build residential or commercial properties from the base up.

Renovation Loans

Aimed at upgrading and enhancing existing properties, these loans finance significant remodeling efforts that increase property value and utility.

Benefits

Construction loans can help business owners, developers, and real estate investors fund new builds, renovations, expansions, and major property improvements without using all available cash upfront.

Funds ground-up construction

Finance the development of new commercial buildings, residential investment projects, mixed-use properties, and other construction projects.

Supports phased project costs

Construction financing can be structured around draws, allowing funds to be released as work is completed and verified.

Helps preserve cash reserves

A strong loan structure can help keep capital available for permits, materials, labor, contingency costs, and other project needs.

Can bridge to long-term financing

Construction loans may be used as short-term financing before refinancing into a permanent loan after the project is completed.

Challenges

Construction financing can be useful, but lenders review these projects carefully. The right structure should account for budget, timeline, borrower experience, collateral, projected value, and exit strategy.

Project budgets and cost estimates must be well supported

Delays can affect the draw schedule and total project cost

Borrower experience and contractor strength are closely reviewed

Lenders need a clear repayment or refinance plan

Practical Construction Financing for Builders, Investors, and Business Owners

Ground-Up Construction: Finance the construction of a new property from the initial site work through completion, based on project scope, budget, timeline, and borrower qualifications.

Renovation and Buildout Funding: Secure funding for major improvements, tenant buildouts, property upgrades, and expansion projects tied to business or investment use.

Bridge-to-Permanent Financing: Use construction financing to complete the project, then refinance into a longer-term loan once the property is stabilized or ready for use.

Apply Now to Review Better Options for Your Construction Project

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F.A.Q’s

Common Questions Answered

What can a construction loan be used for?

Construction loans may be used for ground-up construction, major renovations, property expansions, tenant buildouts, site work, materials, labor, and other approved project costs.

How are construction loan funds released?

Many construction loans use a draw schedule. Funds are released in stages as work is completed, inspected, and approved according to the project budget and lender requirements.

What do lenders review for construction financing?

Lenders typically review the project budget, construction plans, permits, contractor information, borrower experience, credit profile, collateral value, and repayment or refinance plan.