Question:

What does a commercial construction loan company do?

Answer:

Commercial construction loan companies provide financing for constructing or improving commercial real estate. Commercial construction loans are multimillion long term loans which are difficult to obtain. Banks will most surely turn you down if your credit is not excellent. Rather than from banks, commercial construction loans are best to obtain from specialized lenders and financial groups specializing in commercial construction financing.

A commercial construction loan company will finance land and infrastructure development, as well as construction. Hard money and bridge loan are also often offered in an array of construction loans.

Typically, a commercial construction loan company will fund loans from 75% to 100% LTV. The highest LTV is usually available full doc only.

A bank or the commercial construction loan company is usually not willing to fund all 100% of the construction project. Even though 100% construction financing is available, most banks and commercial construction lenders will have the developer contribute the land free of mortgages, to provide for some equity.

Locate Commercial Construction Loan Companies

There are some very good online commercial mortgage portals. A commercial mortgage site with hundreds of commercial lenders will make locating a commercial construction loan company very easy.

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