A Construction Loan provides short-term financing to fund the building or renovation of a residential, commercial, or mixed-use property. Whether you’re developing a new project from the ground up or improving an existing property, construction loans offer the capital you need to bring your investment vision to life.

Requirements for a Construction Loan

To qualify for a construction loan, borrowers generally need to provide:

• Collateral Coverage: Property or land must typically secure at least 160% of the requested loan amount, based on completed project value.

• Business Entity: Funding is typically issued to an LLC, corporation, or real estate holding company.

• Detailed Project Plan: A construction budget, timeline, and scope of work are required for underwriting.

• Financial Documentation: Personal financial statement, proof of liquidity, and investment track record.

Benefits of a Construction Loan

• Flexible Credit Requirements: Approval focuses more on the project’s profitability than personal credit.

• Asset-Based Financing: Lenders evaluate the value and potential of the property, not just your financials.

• Custom Funding Options: Draw schedules, interest-only payments, and tailored loan structures available.

• Build or Renovate for Profit: Perfect for developers, contractors, and investors seeking to add value and generate high returns.