Construction Loan Financing
Commercial construction, development and renovation financing considerations.
How Commercial Construction Financing Works
Construction loans provide financing for eligible costs associated with building or significantly improving commercial property. Instead of funding the entire approved amount at closing, proceeds are commonly disbursed in draws tied to project milestones and lender-approved budgets.
Common Project Types
- New commercial buildings and facilities
- Multifamily and mixed-use development
- Commercial property additions or major renovations
- Eligible tenant improvements and build-outs
- Site work or land improvements when permitted by the financing program
What Helps a Project Move Forward?
Construction lenders commonly ask for a project summary, budget of hard and soft costs, development plans, timeline, financing sources, estimated completed value, professional team qualifications, site control, and relevant approvals.
From Construction to Permanent Financing
Depending on the loan structure, a completed project may refinance into permanent commercial financing. Discuss the construction phase and permanent exit strategy early in the process.
Availability and draw schedules depend on underwriting, inspections, approvals, project feasibility and lender requirements.
For project preparation, review the construction documentation checklist.