Construction loans provide interim financing to accommodate the development of a property. They are short term in duration and fund the horizontal and vertical development of a project, sometimes a percentage of land and other acquisition cost. Interest only payments are customarily required during the construction phase although some projects may qualify for prepaid interest reserve with some construction financing converting to a fully amortizing loan at the completion of the construction schedule and/or other benchmark or the need for a permanent loan to be in place to extinguish the construction loan at a preordained time or condition. Possible construction loans terms available by lenders are:-

Multifamily, Retail, Industrial, Mixed Use, etc.

60-80% LTC/LTV

Loan Term: 2 - 5 years

Recourse

Non-Recourse

and more...