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Business Construction Loans

Our Construction Loans are the perfect partner for building your vision.

At TEG Federal Credit Union, we’re more than just a financial institution; we’re your partners in building success. Our Construction Loans are designed with your unique project in mind, offering the flexibility and support you need to bring your vision to life. With a commitment to the Hudson Valley community, we’re here to empower and collaborate with you every step of the way. Let’s build something great together. Start your journey to success with TEGFCU today.

Construction Loan Features:

Financing up to $3,000,000

Maturity generally up to two years – longer terms available for Construction to Permanent Loans

Fixed interest rates

Interest-only payments during construction

The building is used as collateral

Michael Mazzuca

Business Development Officer

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Working with TEGFCU means working with a company that is based in the community, working for the community. We are well-versed in the issues that hit close to home because we are located close to home. TEGFCU loan officers provide services that have been curated and tailored to meet your specific business needs. You concentrate on growing your business. TEGFCU is concentrating on making the financing piece of the equation as easy as possible.

Business Construction Loan FAQs

What is a Construction Loan?

A commercial builder can secure a Construction Business Loan, a type of short-term financing, to cover the cost of building real estate property. Examples of real estate property include a new home, residential 1-4 family investment property, traditional mixed-use investment property, or some other real estate asset. Some Construction Loans can be used solely to renovate existing structures or install upgrades, such as a solar power system.

What are the repayment terms for a Construction loan?

A Construction Loan’s repayment terms (sometimes as short as six months) are notably shorter than a mortgage loan (usually 15 to 30 years). Monthly payments for Construction Loans are typically for accrued interest only, while mortgage loans factor interest and principal into the payment installments.

What are the various types of Construction Loans?

There are several types of Construction Business Loans, each with its intended purpose and terms. Types of Construction Business Loans include:

  • Construction-only Loan
  • Construction-to-Permanent Loan
  • Renovation Loan

How can I use a Construction Loan for my business?

Construction Loans can be used to construct income-generating property, such as residential investment properties, retail stores, and shopping centers. Construction financing could work for your business if you need a loan to cover commercial construction costs, such as labor, construction materials, and subcontractor fees.

Who Can Apply?

As a local Credit Union, TEGFCU serves a variety of Hudson Valley businesses. If your business is in and/or does business in the NY counties of Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, or Westchester, then your business is eligible for all the benefits of TEGFCU Business Membership.

Not a business member yet? Let’s change that. Find out what documentation you need to join.

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