LET'S BUILD A BRIGHT FUTURE
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
Why Choose TEGFCU For Your Commercial Construction Loan?
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Manager of Business Development
WHO CAN APPLY?
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 for the renovation of existing structures or to install upgrades, such as a solar power system.
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.
There are several different types of construction business loans, each with its own intended purpose and terms.
The types of construction business loans include:
- Construction-only loan
- Construction-to-permanent loan
- Renovation loan
- End Loan
Borrowers should be conscious of which type of construction loan they use, as some may only apply during the construction phase and may need to be refinanced into a longer-term loan.
Construction loans can be used to construct income-generating property, such as residential investment properties, retail stores and shopping centers. If you need a loan to cover commercial construction costs, such as labor, construction materials and subcontractor fees, then construction financing could work for your business.