Construction Loans

Build up your vision with the financial assistance you need.  Construction loans are a proven way to bring your building project to life, and we’re here to help your business acquire the funds and rates you need.

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What is a Construction Loan?

A construction loan is a short-term loan used to finance the expansion of your building or business. Unlike a traditional loan scenario, you are only responsible for the funds disbursed from the bank as you progress along a roadmap of predetermined milestones.

Our job is to connect you with a lender who will help you establish realistic milestones for your project, after thoroughly reviewing your building needs, personnel, and financial information. The lender will fund each milestone as you complete them, shielding you from an obligation for the whole lump sum, in the event of unexpected delays and issues. 

SBA
The Small Business Administration helps small for-profit businesses in the United States get construction loans. You can get up to 90% of your project costs funded with an SBA 504 loan, or potentially more with an SBA 7(a) loan.
Hard Money & Bridge Loans
If you need cash quickly, a hard money loan can finance your needs in as little as 48 hours. Despite the speed of approval, this short-term solution can last up to several years, and once the term ends, you can repay the loan or transition into long-term financing.
Refinancing
If you’re stuck with a high-interest rate, you can free up cash for your business by refinancing. By obtaining a loan with a better rate, you can quickly pay off the old loan and put yourself in a better monthly position, while strengthening your business’ credit history at the same time.

Advantages of Construction Loans

  • Get funding for any stage of construction.
  • Use equity to secure a loan with a lower interest rate.
  • Pay only the interest until the project is complete.
  • Liability is limited to funded milestones.
  • Roll your loan over to longer-term financing.

Frequently Asked Questions

01

What are interest rates on Construction Loans?

In general, interest rates vary between 4% and 15%. Your specific rate will depend on the cost of the construction, the value of the completed real estate, your firm’s credit history, and the size of your down payment.

02

Why use a broker to find Construction Loans?

Most businesses have neither the time nor the need to form long-term lender relationships. Brokers, however, invest this time to build strong networks with reputable lenders. Thus, a broker serves as one professional who can supply a range of high-quality financing options.

03

When is a Construction Loan not a good fit?

If you are not able to pay a final lump sum, or if you decide to build the project yourself, you may want to explore alternatives such as an owner-builder construction loan or long-term instruments. Our extensive lender network allows us to match any of your construction needs with appropriate financing tools.

04

Can a Construction Loan be used for residential property?

Construction loans are typically taken out by business entities to fund investment or owner-occupied property projects. If you’re looking to build a single-family residential property, we can help you find a more appropriate loan.

05

What does “owner-occupied” mean?

For business construction loans, some lenders want your business to occupy at least 51% of the project you’ll be financing. If you are building or modifying a building for resale, we’ll find a lender who will work on your terms.