Construction Loans
Construction development loans provide a vital source of capital for business owners who will not see any income until their commercial property has been completed. The construction of any building--commercial or otherwise--can take many months if not a couple of years. With no immediate business income to use as collateral, borrowers depend on construction development loans in order to move ahead with their business plans
Construction Development Loans
Badcreditmortgage411.com offers a few different types of construction development loans. For entrepreneurs who only need short-term financing, there is a type of loan known as a "bridge" or "interim" loan. The average bridge loan is for a three-year term and can be in the form of either capital or a line of credit.
Other types of commercial loans include financing of the soft costs, construction costs, and hard costs of the commercial construction and development loans.
- Acquisition and Development- Raw land infrastructure development.
- Construction Mini Perm- Construction with a 3 to 5 year loan.
- Construction Loan with Take Out- Construction with pre-arranged financing for the permanent loan.
- Interim Loan/Bridge Loan- A short term (2 yrs or less), bridge or project type loan.
- Joint Venture (JV)- A financial partner in the development of real estate.
- Real Estate Purchase Loan- Lending for the purchase of commercial real estate.
Construction Loans:
Funds can be used to cover both construction costs and certain soft costs associated with a project, including the cost of land acquisition, building construction or improvements, and fees for professional services, appraisals, title work, searches, surveys, your lender and the SBA guarantee.
A construction loan is easily converted to long-term financing once the construction project is completed. This means you won't need to apply for another mortgage. Apart from the considerable convenience that this offers, you'll have just one closing and one lender.
