Definition: A short term loan to pay for the construction of commercial buildings. These loans typically provide periodic disbursements to the builder as each stage of the building is completed. When construction is completed a take—out or permanent loan is used to pay off the construction loan.
Keep in mind that each Lender has it’s own specific guidelines and that commercial construction loans take quite a bit of diligence before they are approved. This is only meant to be a general list of the items you should consider preparing in advance of contacting Lenders for an investment construction loan*:
Commercial construction loans offered nationwide. CLD offers conventional construction loans for commercial real estate properties and SBA-504 companion mortgages for transactions that are approved via the Small Business Administration that require a construction phase.
Commercial Loan Direct offers conventional construction loans for commercial real estate properties, SBA-504 companion mortgages for transactions that are approved via the Small Business Administration, and FHA loans for apartment complexes construction. Property types eligible for construction financing are as follows: industrial, medical, mixed use, multifamily, office, retail, as well as self-storage.
Learn about the different types of commercial loans and real estate lending programs offered by CLD with our loan finder. CLD provides Fannie Mae, Freddie Mac, FHA, CMBS, Conventional, Insurance, USDA, SBA, Bridge, and Construction Loans.
Apartment construction loans and multifamily construction mortgages. #1 Ranked online commercial lender
