Real estate investors looking to build new properties are faced with the difficult task of financing the full scope of their projects. This process is complicated, which means they need experienced lenders to help them navigate the red tape. Whether an investor is planning to build a new structure from the ground up or add onto an existing piece of real estate, commercial construction loans are the best option.
At Liberty Mortgage, our professionals can help turn your real estate venture from a dream to reality. Since 1998 we’ve helped realtors, investors, and organizations obtain the loans they need to develop properties and reach their business goals.
Understanding Construction Loans
A commercial property loan is meant for anyone wishing to invest money and time into the construction of a property and all expenses related to the project. Investors, small businesses, contractors, and even homeowners can use these loans to finance construction projects.
These loans typically come with high interest rates. This is due to the potential risk involved in construction projects. In addition, construction loans typically require a sizable down payment. This is usually around 20 to 25% of the entire project cost. During the application process, you’ll need to provide extensive details of the project. This includes the amount of funding you require, a timeline, blueprints, material expenses, and labor costs.
Benefits of Commercial Construction Loans
If you’ve been thinking about applying for a commercial finance loan, but aren’t sure if it’s the right move, you should be aware of the benefits that come with it. You may be surprised how it will help your venture.
- Use a construction loan to offset the cost of all equipment and building materials needed for the project.
- Businesses ready to grow can use a loan to expand an existing location or build a new facility.
- Use a loan to hire employees needed to aid in the construction process. You can also use the financing to train existing employees.
- A construction loan can help with renovations or repairs after a natural disaster or other unforeseen event.
Due to the high-interest rates connected to commercial loans, many people opt for commercial mortgage refinance. The longer loan terms and more affordable interest rates ease the burden of monthly payments. Refinancing also gives you the option to take cash out if you need to make additional upgrades to the property.
Another huge benefit is you can get out of an adjustable-rate mortgage. This will result in a debt payment that doesn’t fluctuate. Finally, if you refinance, you’ll avoid a sizeable balloon payment towards the end of the mortgage. Ask us about refinancing services to help manage your debt.
Let Liberty Mortgage Help Secure Your Construction Loan
If you’re ready to get your next construction project off the ground and need funding, let us help. We can secure the best loan for your particular needs and will help you navigate the entire process. We’ll also educate you on the important issues surrounding your loan. Contact us today at 281-524-7392.