As I mentioned on our home page, there are six different categories of construction loans with several other sub categories.
Here is a more complete list of the all the different types of construction financing we deal with so you can immediately tell if we are able to assist you with your unique residential or construction project.
The challenges with construction financing relate directly with all these different stages and states of construction. Each one has a different associated level of risk and each can require a different lender.
For even the most basic of new construction projects, the builder or property owner will secure a mortgage to purchase the a subdivided, fully serviced lot that is ready for construction. Based on the paid in equity in the property, a construction loan for building is secured as a second mortgage against the property. Once the project is complete, a third mortgage is secured to payout the first two by a long term take out mortgage.
More complex projects will require additional forms of construction financing at certain stages.
And many times some combination of expected events, poor project costs, and sub optimal project management lead to still other interim funding requirements.
To properly accommodate all these different potential customer requirements, we stay focused on a particular geography and develop relationships with as many relevant construction lenders as we can find in order to service our customer.
The major benefits to our customers are as follows:
If you’re planning a construction project that requires financing or are trying to get an existing project back on track, I recommend that you give me a call so that I can quickly assess your situation and provide the most relevant options for your consideration.