Construction Loan
In today's difficult environment the team of lenders at Miel Financial is seeking actively for developers in need of financing. We have access to funds and the quickest turn around time in the industry. An LOI can be issued in 48 hours followed by a commitment letter in 72 hours. Closing is faster than anywhere else in the industry.
A construction loan is made to individuals, builders or developers to fund the construction of single family homes, commercial property or multi-unit developments. These are short-term loans, made to permit construction of the subject property and are repaid from the permanent financing, either from construction loan lender or from another lender.
Features:
These loans are made for construction of the subject property and are not meant as permanent financing. They are available to individuals, builders or developers. Generally approved for an individual only after the borrower has been pre-approved for permanent financing. Development loans may be issued as individual loans or as a revolving line of credit to permit sequential construction of multiple units or parcels. The loan proceeds are not released all at once, but are disbursed according to the release formula in the construction loan agreement. For most commercial construction loans, personal guarantees of borrower or company principals are required.
Commercial Construction Loans, development Loans and Subdivision Loan Finance
Loan amount ranges from: $1,000,000 - $150,000,000
Miel Financial offer construction lending programs to help developers and investors find stable and interest rate competitive construction loans for commercial and residential development nationwide.
Our financing varies in the USA with local, regional and national construction loan programs to offer the best mortgage financing available for any size of real estate development project.
Please review our Commercial Construction development and residential subdivision financing terms:
- Location: Nationwide
- Type: We provide construction financing for acquisitions, refinances, and new construction of real estate properties.
- Loan Options: Adjustable variable rate loans available.
- Amortization: Interest only
- Term: 1 to 2 years interest only with extensions if necessary
- Interest Rates: Prime + 0.5% to 6.0%, or LIBOR + 3.0% to 4.0%
- Loan-to-Value: 70% to 80% of completed value
- 70% to 80% Loan-to-Cost. (LTC)
- Recourse: Typically yes, however we do offer non-recourse construction financing for seasoned developers.
- Debt Service: DSCR on construction loans is 1.25%
- Prepayment terms: No prepayment penalty
- Collateral: Commercial real estate property for development
- Property Types: All commercial and residential subdivision property loan types.
- Requirements: Developer and contractor must have development experience.
- Closing costs: Borrower is responsible for all loan due diligence and third party closing costs (Appraisal, Environmental, site inspection, title insurance, etc)