We arrange Real Estate Construction Loans up to 85% Loan-to-Cost
A real estate construction loan is used to finance a ground up commercial real estate construction project. Typically, these funds are used to purchase and develop new land, cover the materials and labor costs associated with building a new structure, or for a large-scale renovation on an existing property.
While a traditional mortgage is fully funded in one lump sum at closing, a construction loan is paid out using a draw schedule, utilizing an “interest-only” debt service payment structure. As the construction project hits its projected milestones, the loan incrementally pays out or “draws down.”