Construction Financing
- Interest is generally charged on amounts drawn.
- A completion guaranty and budget contingency are typical.
Commercial · Construction
Draws that follow the inspection, not the other way around.
Construction financing for sponsors who can show a budget, a builder, and a plan for what the loan becomes when the building is done.
Construction Financing
A line that funds as the building goes up.
Construction loans for ground-up and substantial rehab, converting to a permanent loan when the project stabilizes.
- Interest is generally charged on amounts drawn.
- A completion guaranty and budget contingency are typical.
Compare
| Construction Financing | |
|---|---|
| Draws | Inspected advances |
| Takeout | Permanent financing discussed up front |
| Sponsors | Experienced local developers |
| Best for | Ground-up and gut rehab |
| Monitoring | Inspections and budget tracking |