Aurora construction loans can come from a number of different sources. The lower cost funding comes from the major schedule A banks, but in many cases, the large banks will not be interested in certain types of construction financing, or will have very stringent requirements for lending money on these types of requests. Second tier banks are also significant players in providing construction mortgage financing, especially with mid sized projects. For smaller projects, private mortgage construction financing can sometimes be the major capital provider in some areas, depending on the project mix.
In the end, the process is about matching your project and requirements up to the best potential lender fit that exists in the market at a particular point in time. This can be further extended to construction project phases where the financing requirements of each stage of the project may be more relevant to a certain group of lenders.
In most cases, regardless of size, construction projects require two or more forms of mortgage financing during the life time of the project. This can start at the point where land being being secured for a development and extend all the way to a take out mortgage or construction inventory financing facility for units that are completed but not yet sold.
In order to get an Aurora construction loan that meets your requirements and is put into place in the time you have to work with, the best approach you could take would be to work with a construction mortgage broker with experience placing different types of construction mortgages in your area.
And if you do have a multi phase project that will require more than on type of construction loan, it will be that much more important to be working with a broker that can not only source the different requirements, but also assist in managing the transition from one mortgage to another without causing any cash flow disruptions.
If you are in need of an Aurora Construction Loan for a residential or commercial project, I suggest that you give me a call so I can quickly assess your requirements and provide you with relevant construction mortgage financing options for your immediate considerations.