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Construction Loans

Finance ground-up construction or major renovation projects

Commercial construction loans fund new development or major rehabilitation projects. Funds are disbursed in stages as construction progresses. Most are short-term (12-36 months) and convert to permanent financing upon completion.

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Loan Range
$500K – $100M
Typical Rate
7% - 10%
Down Payment
20-35%
Term
12-36 months (construction period)
Closing Time
30-60 days

🎯 Best For

  • Ground-up development
  • Major renovations
  • Land + construction
  • Build-to-suit projects

✅ Advantages

  • Interest only on drawn funds
  • Funds disbursed as needed
  • Can include land acquisition
  • Construction-to-permanent options available

⚠️ Considerations

  • Requires detailed plans and budgets
  • Draw schedule inspections
  • Higher rates during construction
  • Completion risk on borrower

Construction Loan Requirements

  • Detailed construction plans and budget
  • Licensed general contractor
  • Building permits
  • Development experience (strongly preferred)
  • 20-35% equity

Top Construction Lenders

14 lenders offer construction loans nationwide.

ConnectOne Bank

SBA Verified

ENGLEWOOD CLIFFS, NJ

New Jersey-based commercial bank offering SBA 7(a) loans, commercial real estate, construction lending, and business banking. Serves entrepreneurs and businesses in the New York-New Jersey metro area.

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Bank of America

Charlotte, NC

One of the largest US banks. Commercial real estate lending, construction financing, and SBA loans through nationwide branch network.

Nationwide
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Broadmark Realty Capital

Seattle, WA

Private real estate lender offering bridge, construction, and land loans. Now part of Ready Capital. Loans from $500K to $25M+.

Nationwide
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CoreVest Finance

Irvine, CA

Rental portfolio and bridge lender for residential real estate investors. Build-to-rent and portfolio financing specialist. Redwood Trust subsidiary.

$200K – $50M Nationwide
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JPMorgan Chase

New York, NY

Major CMBS originator and commercial lender. Full range of CRE financing including conduit, agency, and balance sheet.

Nationwide
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KeyBank Real Estate Capital

Cleveland, OH

Major bank CRE lender. Balance sheet, agency, and CMBS lending for multifamily, office, retail, and industrial properties.

Nationwide
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Lima One Capital

Greenville, SC

Private lender for real estate investors. DSCR loans require 1.5+ ratio, min FICO 700. 5, 10, and 30-year options. Up to 75% LTV on purchases.

$75K – $5M Nationwide
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Merchants Capital

Indianapolis, IN

Bank-backed commercial lender active in 47 states. Over $6.8B in financing. Specializes in multifamily, affordable housing, and healthcare.

Nationwide
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Construction Loans FAQ

How do construction loan draws work?
Funds are released in stages as construction milestones are completed. An inspector verifies work before each draw. You only pay interest on the amount drawn.
What is a construction-to-permanent loan?
A single loan that automatically converts from a construction loan to a permanent mortgage once building is complete. Saves closing costs vs. two separate loans.

Are you a lender offering construction loans?

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