“If You Need To Find a Source For Fast Construction Mortgages, Then There is Only One Source To Consider”

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.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Fast Construction Mortgages Come From Private Mortage Lenders first appeared on Ontario Construction Loans And Mortgage Financing.

“If Your Project’s Cash Flow Has Stalled Out, Then A Fast Construction Loan May Be The Answer To Get Things Back On Track”

Construction projects tend to have the most cash flow problems are the very beginning and at the very end of the project. At the beginning, even if you have a construction loan arranged, it can be hard to get the first draw advanced. Bank construction mortgage requirements will be the most rigid leading up to the first draw and unless all the bank’s conditions are met, they will not advance funds which means they are also not invested in the project yet. At the end of a project, the budget may have become overrun leaving a short fall in funds to cover off the remainder of the costs. And even in the middle of the project, an institutional construction loan draw can be cut back subjectively by the lender based on their assessment of the work remaining versus the amount of funds still available to be advanced. Regardless of the reason or timing, if additional capital can’t be located quickly, the project may start to incur delay costs, breech of contract scenarios, or worse. The solution for many of these types of construction financing shortfalls is a fast construction loan. These are equity based loans typically provided by local private lenders that are lending against the current value of the construction project or on another piece of property that may be totally unrelated to the construction real estate. These construction mortgages can also be called construction bridge loans as they are very short term in nature and are typically for a smaller portion of the overall project. That being said, a fast construction loan may also be required to replace the bank building mortgage completely if the draw process has been stalled out for whatever reason. The key to locating and securing fast construction loans is to work with a mortgage broker that focuses on both construction and private mortgage financing in your local area. This will provide you with both the expertise and sources of financing that can get the job done quickly. How Quick? Construction loans for existing projects where all the paper work and approvals are in place can be arranged in a matter of days to a week. If you have a construction project that needs to consider fast construction loans right now, give me a call so I can quickly assess your requirements and provide relevant financing options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Fast Construction Loans first appeared on Ontario Construction Loans And Mortgage Financing.