Financing a new project that involves building your commercial or residential property will take you to request construction loans in order to cover every expense and problem that could take place during the process. Unless you are someone who is able to finance the entire project with your savings or income, you will need to know that construction loans are not similar to regular ones like real estate mortgages or similar ones.
Instead of working with the usual system of depositing the funds into the bank account of the borrower after it is approved, construction loans have a different approach: lenders work closely with the borrower but also the contractors hired for the construction project.
This is why the requirements—regardless of the lending institution or company you choose—will be quite similar when trying to apply for one:
- Provide details about the construction project: contractors, drafts, the approximated sum of money needed, how long it may take, and anything relevant that will influence the process.
- Credit score.
- Contractors’ reputation and reviews.
- Specify if it is residential or commercial construction.
With this in mind, that does not mean that any lender will do. For example, if you are considering banks or similar lenders that most people have relied on over the years, you need to consider it twice. They are not the best options due to the interest rates established for construction loans and it is hard to have them cover the entire cost of the project plus establish enough amortization time.
On the other hand, private lending companies are much better in every way: interest rates, amortization, LTV ratio, term of the loan, and more. However, not all of the lending companies available in Jacksonville and throughout the state will cover all your needs and meet the expectations. At Commercial Real Estate Loan Pros of Jacksonville, we can guarantee that your construction and its future will be in good hands, especially because our LTV ratio ranges from 70% to 100%, allowing you to finance any residential or commercial construction most of the time.
How do our construction loans help you finance the project?
As we previously mentioned, the funding process is not the same. Instead of providing all the funds for you to pay the contractors throughout the project, we will take care of this. In other words, you will hire the contractors and we are going to take care of the payments every time they start or finish a part of the construction.
You are not going to have access to the funds but rather rely on us for the payments, which is why we are involved with the contractors and you as the borrower. The payment of the loan is divided into two parts:
- During the construction, until it is completed, you will pay the interest rates only, not the sum of money requested and approved.
- Once the construction is finished, you will start paying for the funds in specific along with interest rates if there are still a few payments missing.
This method allows you to relax in terms of not having to deal with the money and entire payment of the construction. Also, we help you with the aspect of making sure that the contractors are fulfilling their part in the process. If interested, just make sure to rely on us at Commercial Real Estate Loan Pros of Jacksonville and ask for all the details about our construction loans for several types of properties and structures.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.