Retirement home construction financing is available through our broad network of construction lending sources.
Construction loans for retirement homes can be for both new builds as well as renovations and additions.
Sources of financing for retirement home loans basically fall into three different categories.
We refer to the lower risk, lower rate category as banks and other name brand institutional lenders. The cost of financing will be the lowest from this group, but in turn the time to arrange financing can be considerable, depending on the project, and the lending/funding criteria is also harder to meet.
The second group is what we describe as quasi institutional where the source of money may be from an investment banking group, a hedge fund, or some other form of organized capital that does not have a branded presence. The funds from these sources tend to be slightly higher than banks and institutional lenders, but the higher rates tend to provide for higher risk as well which can make these sources a great alternative to the banks. This group of lenders also tends to move a lot faster in terms of the application process, but still will require full disclosure before committing to any funding opportunity.
The third group consists of private mortgage lenders that have a focus in construction financing. The private lenders that fund construction are in the very small minority of private mortgage providers in general. But even as a small number of lenders, they can still provide a considerable amount of capital for retirement home projects. And while private lenders will lend to be more expensive, there also tend to be much more streamlined in their lending/funding process and draw advance process. In addition, private lenders can be an excellent source of construction bridge financing if incremental capital is required before the project is completed.
The key in arranging retirement home construction financing is to align the financing requirement up with the right lending source so that their is no time or money wasted arranging funding, and so that all relevant timelines can be met.
The best approach to getting the right retirement home construction loan arranged is to work with an experienced construction mortgage broker who has access to these different groups of lenders and who can properly advise you as to where your needs will be best met.
If you are currently planning a retirement home project that will require construction financing, or if you are in the middle of a retirement home build that needs more capital, I suggest that you give me a call so we can quickly go over your requirements and provide discuss retirement home construction financing solutions that can meet your needs in the time you have to work with.
Click Here To Speak With Construction Mortgage Broker Joe Walsh For A Free Assessment Of Your Retirement Home Construction Financing Options