Most construction mortgages take a bit of time to get into place as lenders typically want to see that everything related to the construction is in order and that the borrower or builder has the equity in place necessary to secure a construction loan against the property.
So fast with respect to arranging construction mortgage financing is a relative term to begin with.
But when everything is in order and can be provided on demand, fast construction loans can be arranged and put into place in as little as 48 hours.
The key is what stage the project is at in terms of planning and/or completion.
For example, say that you have already been approved for a construction loan at a bank, but for whatever reason, you can’t get the first draw advanced. In this situation, this could be a good fit for a fast construction loan as everything required for the first approval will be at hand for immediate review.
To get a construction mortgage in place in a matter of days will require use of a private mortgage lender that has a focus on construction loans in the first place. This will allow for the fastest possible decision making and mortgage documentation execution.
Most fast construction loans are for 1) bank loans that can’t get advanced; 2) draw cut backs that leave the project with the need for additional capital; 3) cost overruns that do not allow the project to be completed without additional capital being injected.
In all these cases, the only real source of financing for new capital within a matter of days is private lenders that do this sort of thing on a regular basis.
The private lender is going to charge for the speed requirement, but when you compare this incremental financing cost to other costs that may arise from not getting the project started on time, or having it stall out somewhere in the middle, the added cost can become quite trivial.
And the more advanced the project is, the faster the financing can be arranged due to the speed with which the lender can assess the remaining work and project risk.
If you are in search of fast construction mortgages, give me a call right away so I can quickly assess your situation and provide relevant options in just a few hours for your consideration.