Construction finance is a loan that allows you to build a new property from the ground up. As such, this type of financing is best suited for developers who are able to secure a large tract of land and plan the development of the project from scratch. These loans can be used for any type of commercial or multifamily project, including mixed-use developments, strip malls and office buildings. Ground up construction loans offer several benefits compared with other types of financing methods including:
Construction Finance
Construction Finance is a type of construction loan that allows you to finance the construction of a new building or home. It’s also known as ground up construction financing, and it’s different from many other types of mortgages because it doesn’t require an existing structure on the property before you can get financing for your home.
Ground Up Construction Finance offers several advantages over traditional mortgages:
You don’t have to wait until the house is built before purchasing it–you can take out loans right away and then close once everything is done! This means less risk for lenders because they know exactly what they’re getting into with this type of transaction. It also gives buyers more flexibility when it comes time to close on their homes (which means no more waiting around).
Types of Loans Offered – Construction Finance
Commercial Construction Loans: These loans are used to finance the construction of commercial buildings or other structures, such as warehouses and office buildings. They’re also used for industrial projects such as manufacturing plants, power plants and oil refineries.
Multifamily Construction Loans: These loans are designed for financing multifamily residential properties like apartments and condominiums.
Ground Up Construction Loans: Ground-up construction loans are usually taken out by developers who want to build a new property from scratch instead of buying an existing one that needs renovating or restoring (known as “fixer-uppers”).
Commercial Construction Loans – Construction Finance
Ground-up construction loans are a type of commercial mortgage loan used to finance the cost of constructing a new building. The loan is secured by the property being constructed, which means that if you fail to make your payments on time, your lender can take ownership of that property and sell it off in order to recoup their losses.
These loans are typically used for self-storage facilities, senior living communities and other projects with high upfront costs but minimal operating expenses (and therefore low monthly payments). Ground up construction financing also has some tax benefits: interest paid on these types of mortgages is tax deductible as an expense associated with business use of real estate; additionally, depreciation deductions may be claimed for any portion of buildings or other improvements placed into service after January 1st 1987 but before January 1st 1991 (or later).
Multifamily Construction Loans
Multifamily construction loans are a great option for developers who need to finance their projects, but don’t have access to the capital they need. Interest rates start at 4%, and we can provide up to 100% LTC.
Applications are easy, and approvals happen quickly! If you’re looking for financing options for your multifamily construction project, contact us today!
Receive up to 100% LTC for Construction Finance
You can receive up to 100% LTC for commercial and multifamily ground up construction projects. This financing is ideal for developers, contractors, and investors who need funding for site preparation, infrastructure development, or building materials.
Easy Application Process
The application process is fast and easy–we will work with you to secure approval within 24 hours! We offer competitive interest rates that start at 4%.
Conclusion
If you have any questions about ground up construction financing, we are here to help. We know that it can be a confusing process, but we are here to make sure you get the best deal possible on your next project. If this sounds like something that could benefit your business or investment property then contact us today!
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