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.
Find Construction Lenders →🎯 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 VerifiedENGLEWOOD 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.
Bank of America
Charlotte, NC
One of the largest US banks. Commercial real estate lending, construction financing, and SBA loans through nationwide branch network.
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+.
CoreVest Finance
Irvine, CA
Rental portfolio and bridge lender for residential real estate investors. Build-to-rent and portfolio financing specialist. Redwood Trust subsidiary.
JPMorgan Chase
New York, NY
Major CMBS originator and commercial lender. Full range of CRE financing including conduit, agency, and balance sheet.
KeyBank Real Estate Capital
Cleveland, OH
Major bank CRE lender. Balance sheet, agency, and CMBS lending for multifamily, office, retail, and industrial properties.
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.
Merchants Capital
Indianapolis, IN
Bank-backed commercial lender active in 47 states. Over $6.8B in financing. Specializes in multifamily, affordable housing, and healthcare.
Construction Loans FAQ
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