Construction Financing
Steady cash flow is the bloodline for any commercial construction project whether you are building an office building, retail center, industrial building, or any other type of income-producing property. We have a range of loans for the construction of commercial property to fit your unique requirements. Our seasoned commercial lending officers have years of expertise in construction financing. Our team of commercial construction experts includes accountants, engineers, and other principals who make sure you achieve your desired goals.
A construction loan is a loan that helps the borrower to build, expand, rehabilitate, or reposition a property. In most cases loans to finance a real estate development project fall under two broad categories, although sometimes these two loans will also be combined into one:
Short-term financing. This caters to the financing needs for the construction and lease-up phase of the project.
Long-term permanent financing. Once a project becomes stabilized and leases up to the market level of occupancy, the construction loan is "taken out" by longer-term permanent financing.
The following plays a vital role in decisions related to a commercial construction loan:
- The value of the finished project must be more than the cost of construction.
- Loan-to-Value Ratio
- Loan-to-Cost Ratio
- Debt Service Coverage Ratio
- Net-Worth-to-Loan-Size Ratio
If you have any questions about the Construction Financing contact our mortgage advisors now.
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