Construction Loans
Commercial Construction Loan Programs
Commercial construction loans provide financing for ground-up construction, major renovations, and redevelopment projects for income-producing and owner-occupied commercial properties. These loans are structured to fund projects in phases (draws) as construction progresses and are tailored to the scope, timeline, and risk profile of each project. This program is ideal for developers, investors, and business owners building or expanding commercial properties.
Key Highlights
Eligible Project Types Commercial construction financing may be available for: Mixed-use developments. Retail and shopping centers. Office and medical buildings. Industrial and warehouse facilities. Multi-family properties (5+ units)Owner-occupied commercial properties.
How Commercial Construction Loans Work. Loan funds are released through scheduled draws based on construction milestones. Inspections are required before each draw. Interest is typically paid only on funds disbursed. Loan terms are usually short-term (12–36 months)At completion, the loan is refinanced or converted to permanent financing.
Key Benefits Finance construction costs without full upfront capital. Flexible structures based on project size and complexity. Available for investor and owner-occupied projects. Customized draw schedules and loan terms. Ability to transition into long-term financing after completion.
What Lenders Evaluate
Commercial construction loan approval is typically based on: Project plans, budget, and timeline. Developer or borrower experience. Property location and market feasibility. Credit profile and financial strength. Exit strategy(sale or refinance).
What to Expect
Commercial construction loans typically require: Detailed construction plans and cost breakdowns. Licensed and insured contractors. Appraisal and feasibility review. Higher equity contribution compared to permanent loans. Strong financial and project documentation.