Construction Loans
Contact Us
Building a new residential property or even a commercial one will require as much capital as just acquiring an already built one, and you might need more money in certain cases. This is why construction loans are a better fit when you are trying to get the funds for the project.
But why not traditional or usual loans that give you the funds after getting one approved? Because the terms and conditions are not suitable for the project in your hands. Purchasing a property is completely different from building one and this makes the loans for each project vary in how much funds you can get, the terms offered by the lender, and how the specific credit works.
A usual credit just consists of applying for it by meeting all the requirements from the lender you choose, and you just have to wait for it to be approved and have the funds deposited in your bank account. However, lenders are much more involved during construction loans since they will work near you and the contractors you choose for the project and the funds for it will not be provided straightaway. Instead, you get the money based on the phase of the construction and how it progresses according to the deadline set by the contractors.
To be more specific, this is how it works and what you need to provide:
- Before applying for the loan, make sure to find the contractors, plan your construction project, and set a deadline as well as the final cost.
- Once you have all the details, reach out to the lender you chose—after previous considerations—and provide the information to apply for the loan along with other requirements.
- If your loan is approved, the lender is going to start to finance the construction.
- The funds will usually be provided to the contractors directly based on how they complete the construction stages.
Now, what are “construction stages”? In every project, you will have to purchase the land, start the infrastructure, and go step by step in the construction. You can consider the stages to be the steps in the entire project and when once is completed and the next about to start, that is when the lender provides another part of the funds. In other words, you get the money over the course of the construction.
How to access construction loans
Banks, pension funds, and traditional institutions tend to have even more requirements when applying for these loans since you usually have to work with contractors of their choice. However, when you decide to rely on private companies like us at Commercial Real Estate Loan Pros of Tampa, you get the chance to choose your contractor and apply for the loan without worries. Also, we cover over 80% of the expenses and sometimes, even the total cost of the construction.
In order to access our construction loans, you only need to provide us with the details of your plans, information about the contractors, and how you want to deal with repayment. During the time of the construction, you will only pay interest rates and once it is complete, you start to repay the funds used and requested. This means you start to repay the credit itself once the construction is complete and the property that results from it will be taken as collateral most of the time.
At Commercial Real Estate Loan Pros of Tampa, however, we can vary our conditions and terms depending on the property to be built and your situation. Therefore, do not hesitate to let us know what you have in mind and negotiate with us if we decide to approve your loan since the terms will be discussed before the final agreement or contract.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.