How Do Commercial Construction Loans Work?

commercial-buildings | Commercial Construction Contractors

The process begins when the developer submits a loan request with a licensed lender. These lenders are generally regional and local community banks, though national banks and life insurance companies may also offer a commercial construction loan. There are normally two loans required, though they are often combined into a single loan.

Short-term financing funds the construction and lease-up phases while long-term financing occurs once a project has stabilized and leases to the market level of occupancy. Due to the sums of money involved, getting a commercial construction loan can be a long and complex process, so patience is required. Contact a professional team to learn more…