A Woodstock construction loan is most commonly required for funding building construction. But construction financing can also be required for financing requirements immediately before or after the building phase.
For instance, the first type of funding required for many construction projects is a land acquisition loan to acquire the property where the construction is going to take place. If the property being acquired is bare land, then land development funding may be required to improve the land and install the infrastructure required prior to building construction.
In self build construction project scenarios, when the construction work is completed, a long term construction take out mortgage is required to consolidate all the property and building costs into one long term mortgage facility.
Other types of construction financing requirements are construction bridge loans to cover off changes in project scope or cost over runs that can result before the project is completed. These types of construction loans are typically provided by private mortgage financing sources due to the speed in which they can be put into place which can be as quick as two to five business days, depending on the project and the amount of money required.
For condo projects, its not uncommon for the builder or developer to require a condo inventory loan at the end of the construction process but before condo certification has been granted. This provides the cash flow necessary to fund the project until condo sales can be completed.
For larger commercial and/or residential construction projects, the property owner or developer may require mezzanine funding to support the debt financing requirements of the project and keep the balance sheet ratios in order.
Woodstock construction mortgage financing is available from both bank and private lending sources depending on the capital requirements of the project at any given phase of construction. For some projects, there may be a combination of institutional and private mortgages required during the life of the project to properly fund the work. This is where it can be very beneficial to be working with a construction mortgage broker who has access to a wide variety of construction financing sources.
If you require a Woodstock construction loan, I suggest that you give me a call so I can quickly assess the financing requirements for your project and then provide relevant construction mortgage options for your consideration.