Construction Lending
Ground-up financing for commercial development projects, with funds released in draw phases as the project progresses.
Construction loans provide developers with the funds to complete a commercial property project, disbursed in draw phases to mitigate risk to the lender. Because there's no completed, stabilized piece of collateral until the project finishes, lenders scrutinize the sponsor's development experience, the project budget, and the take-out strategy closely, and stay in frequent contact with the developer throughout the build. Banks are a primary source here — as footprint lenders allocating funds to communities they serve, they're also best set up for the draw and reimbursement process, since they typically have local contacts to monitor the project directly.
Apply Now- Ground-up commercial development financing
- Funds disbursed in draw phases as work completes
- Maximum 75% loan-to-cost
- Nationwide lending from $1,000,000+
- Bank & debt fund sources, depending on project scale
- Close coordination with lender through completion
| Lending Area | Nationwide, with preferred programs for Western states |
|---|---|
| Loan Amount | $1,000,000 and up nationwide; $350,000 and up in California |
| Maximum LTV | Up to 80%, based on risk and in-place cash flow |
| Fixed Rates | Starting at 5.75% and above |
| Amortization | 30-year amortization standard |
| Recourse | Non-recourse options available |
| Prepayment | Ranges from none to yield maintenance or stepdown |
| Underwriting | Starting at a 1.15x debt service coverage ratio |