![]() ![]() ![]() Terms are usually for a year or less, though longer terms can be negotiable. When the construction is rehabilitation rather than new construction, the existing property can also serve as collateral. The loan may require a lien on the for-sale property to act as collateral for the loan. Bridge Loans: In some situations, a developer needs construction funding while they still owe money on a previous project that has not yet sold.Construction loans can be set up as revolving credit lines to fund separate construction loan stages or separate properties in a multi-phased construction project. The term is commonly up to 18 months, but the lender might grant extensions to cover additional fees. New Construction Loans: These are short-term loans, usually interest-only.Proceeds apply to any necessary improvements before new construction begins. Acquisition & Development Loans: These loans cover the purchase cost and subsequent development of raw or partially developed land.You can use loan proceeds to clear land, install infrastructure (i.e., water, sewer, power), subdivide the land, and so forth. Lenders look for developers with solid track records before granting this type of loan. Therefore, borrowers often need to provide additional assets as collateral. Land Development Loans: These are risky loans in that raw land will only collateralize a small percentage of the value of developed land.To arrange for your commercial construction loan starting at $20 million, contact us today at (206) 622-3000, or simply fill out the below form for a prompt response! Apply For Financingĭo you need commercial property loans in excess of $20 million with excellent construction loan interest rates? Assets America ® has the professional expertise and network of funding sources to arrange the financing you require.Ĭommercial construction loans can be categorized by type, as follows: In conclusion, if you are interested in multifamily development, mixed-use development, hospital building, industrial construction, hotel construction, or any other commercial building loan, we are one of the finest choices you could possibly make for successfully closing your construction loan. If you scroll through the Lines of Business dropdown menu (above), you’ll see the numerous applications for commercial construction loans. They can also reconstruct, rehabilitate or upgrade existing commercial properties. PurposesĬommercial construction loans enable borrowers to build new commercial properties. Purposes and Types of Commercial Construction Loansĭifferent types of commercial construction loans are available for a variety of purposes. Importantly, this is essential for the approval and funding of high-end commercial construction loans. It takes a high-end brokerage with decades of experience, like Assets America ®, to handle the extremely detailed and complex documentation. Our construction funding sources consider many factors when underwriting a commercial construction loan, including the developer’s track record, the proposed development’s proforma, and so forth. The lender also checks that the borrower submitted all lien waivers. Prior to the release of subsequent construction disbursements, the construction lender verifies that the borrower properly used the last disbursement for the intended construction expenses. ![]() Of course, the lender monitors these disbursements very carefully. Therefore, the lender makes only partial construction loan disbursements. In other words, the full and final collateral does not exist yet. One of the distinguishing characteristics of commercial building construction is that the physical building has not yet been constructed. Our loans start at a minimum of $20 million, with virtually no upper limit. But we absolutely love them! Assets America ® is one of very few commercial lenders that has the knowledge and background to arrange substantial commercial construction loans and construction financing. Procuring large commercial construction loans is extremely difficult, time-consuming, complex, tedious, and requires a high-level of expertise and experience. ![]()
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