Stratford construction loan options can be quite varied, depending on the type of project you’re planning or working on as well as you personal or business financing criteria.
If you’re most concerned about the cost of financing, then a bank or institutional construction loan will be required. Just keep in mind that lower cost money comes with a lot of requirements to cover off all the risks low interest rate lending needs to avoid. So if you have the time, equity, and credit required to go through the bank process, then we can definitely assist you in getting a construction loan in place.
For most single residential and small construction financing projects, the source of construction financing comes from private mortgage lenders that have a focus in construction.
The private mortgage lenders typically can be secured faster with less administration required to advance funds against the mortgage, but they do come at a higher costs so there is a bit of a speed for cost trade off.
And sometimes speed is the most important factor when looking for funding, especially if an existing project has stalled out from a lack of funds or an inability to get timely draws from the senior construction lender.
Regardless of the requirements, the key to finding the right Stratford construction loan is to work through a construction mortgage broker that is well versed in the different forms of construction financing available in the local market.
Its also not uncommon for different phases of a construction project to have different financing requirements which could end up coming from different sources.
For instance, a single family home, which is the most common form of construction, may require a land acquisition mortgage to purchase a site, then get a construction loan for the building stage, and complete the project by paying out the land and construction costs with a long term take out mortgage. Before completion, if there are cost overruns or upgrades that cause cash flow to be short, a construction bridge loan may also be required. These different forms of construction financing may also need to be sourced through a combination of bank and private mortgage lenders.
This is why it can be very important to be working with an experienced Stratford construction mortgage broker that can help you navigate through all the different funding requirements an individual project may require.