Our Texas based Construction loan team easily delivers industry low rates and fast, easy approval for commercial construction financing.
Whether you are looking for permanent financing, single close short term loans, or acquisition financing, remodeling, fixer upper, texas mortgage loans, home refinance, build your own home or house, land loan, commercial loan, private lenders, direct lender owner builder, texas home loans, debt consolidation, residential home remodeling, home improvement, commercial construction loans; we've got you covered.
For virtually all construction loans, as well as our nationwide construction financing programs, there is speed of approval and low rates are our two highest goals.
Each project is unique, and within a matter of minutes we can give you an assessment of your likely rates and closing deadline.
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CONSTRUCTION LOANS: TERMS & RATES
Construction loans fill this gap and they have shorter terms that are designed to cover just the development and leasing (or sale) period. The most common commercial construction loans offer temporary, short-term financing throughout the development and leasing-up period.
Many lenders are hesitant to provide long-term, low rate notes on what they see as a risky building process where things can go wrong because costs can exceed projections and timelines can be missed.
They are much more comfortable providing permanent financing to borrowers once the development process is completed. This is because the building is already in use, tenants are secured, and they can see the actual financials on the operational commercial property.
As this period incites higher risk for many lenders since construction loans commonly have slightly higher rates than permanent financing. However, they play a critical role — providing investors and developers with the financing needed to move a project from ground breaking through construction and to profit.
THE UNDERWRITING PROCESS
Our underwriting team for Texas construction loans, and nationwide loans, focuses on the real estate proforma and the economics of the individual project. Documentation for this type of financing is likely to include borrower's proforma, project plans, financial statements, cost estimates, tax returns, and other construction financing and usage.
Unlike many permanent or investment real estate loans, most construction projects don’t have a property history. The underwriting process omits these numbers in the evaluation as a result of this criteria.
During the placement, underwriting, and approval process, our team specifically focuses on a detailed break down of the investor’s financial situation, the building and investment team’s experience, the construction budget, proforma, the local real estate market and ANY risks associated with the project.
CONSTRUCTION LOANS: FUNDING TIMELINE
Construction loans in Texas and throughout the US include an initial disbursement at the time of closing, designed to cover both prior and upcoming expenses to finalize the project.
Usually, the borrower will have monthly distributions based on draw requests, all of which are accompanied by documentation for recent construction expenses. The remaining portion of the funds is managed by your loan administrator, and is disbursed periodically throughout the project.
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