Uxbridge construction mortgage loans are available from a number of different types of construction mortgage financing lenders.
The key to any construction financing application is making a strong match between the type of project and the most relevant lender. The best construction mortgage lender fit will also not always be the lowest rate option as there are likely going to be other things to consider that are equally or more important to the success of the overall construction project.
For instance, when you get into larger commercial construction projects, there can be significant equity in the property being developed that the owners want to leverage to secure the highest amount of construction financing as a percentage of construction costs.
The construction lender that provides the maximum leverage for a given project may not provide the lowest rate, but there is then a trade off in terms of the amount of equity investment that needs to be made versus a higher cost of financing. And when you consider that most people attach a fairly high opportunity cost to their equity holdings, the incremental cost of construction financing for higher leverage is going to be way cheaper than having to sink more of your own cash into the project.
Other issues with lender fit are related to 1) the comfort you have in the people the you’re going to work with and 2) the administration process that the construction lender will follow to manage the construction loan and advance funds. Both of these are not trivial and should be built into the lender selection process.
Lenders are also going to vary in terms of those that are interested and what they’re prepared to offer for different stages of a construction project. Construction financing for site development can attract a different lender crowd and terms than a construction build loan as an example.
The best way to increase the chances of getting good lender fit is to work through an experienced construction mortgage broker that has access to all the different types of construction financing sources you may require from your area.
So whether you’re a developer, property owner, or builder looking to secure Uxbridge construction loans, I recommend that you give me so I can quickly assess your requirements and provide construction loan options for your consideration.