Considering construction loan options and their features

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Considering construction loan options and their features

October 16
16:26 2019

Businesses in the construction industry are always on the lookout for construction loans near me. A construction loan is a type of bank-issued short-term financing that is available to anyone who is investing their time and money in construction or related expenses.

Uses of Construction Loans

There are several reasons for applying for a construction loan, some of which are listed as follows:

  • Purchase of Equipment and Materials

  • Expansion of a Company’s Facility

  • Hiring and Training of Employees

  • Overcoming Damage or Disaster Expenses

Types of Construction Loans

There are a number of construction loans available to businesses for different uses. A few of such loans are briefly highlighted as follows:

  1. Construction Mortgage Loans: This is a loan can be used for financing the purchase of land, or construction of a home. These loans are usually structured so that the lender pays a percentage of the completion costs and the builder or developer pays the rest.

  2. Construction-to-Permanent Loans: Otherwise known as the CPloan, construction-to-permanent loans are another option for financing the building of a new home. CPloans offer some extra convenience to borrowers by combining two types of loans in a single process.

  3. Commercial Construction Loans: These loans are for borrowers that are looking at a bigger project and are planning to construct a multi-family home or apartment building, high-rise, multi-unit retail center, commercial office building, or other type of larger project.

Eligibility for a construction loan

Lenders often a list of criteria that must be satisfied before a construction loan is approved. Some of the commonest requirements include –

  • Down payment

  • Strong personal credit

  • Financial documents

  • Good reputation

  • Specific plans

  • Appraisal

Before making decisions about a potential construction loan, it is advised to consider a wide range of options. Banks, online lenders, brokers, and subcontractors can be particularly helpful in this situation, putting borrowers through the difficult and stressful process of completing a construction project.

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Company Name: Funding Box Company
Contact Person: Viola D. Hayes
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City: Philadelphia
State: PA
Country: United States

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