There are multiple types of construction loans we can provide.
Land Development Loan: you have raw or undeveloped land needs to be made construction-ready a land development loan can be obtained. The raw land may be subdivided and sold as a number of parcels for commercial or residential use. It may also include the installation of sewer, water or power lines to the site.
Acquisition and Development Loan: An A&D loan is appropriate if the raw land is ready to be developed, or is already developed but needs improvements to its infrastructure or existing buildings. The A&D loan usually covers both the purchase of this land and the cost of any improvements needed before the development can be completed.
Mini Perm Loan: This is a temporary loan typically used to settle an outstanding construction or commercial property loan on a project that, once completed, would produce income. After three to five years of generating income, the mini-perm loan is replaced with long-term financing. Mini-perm loans are normally obtained through commercial banks.
Interim Construction Loan: This pays for the labor and materials used to construct a project. An interim construction loan is usually valid for 18 to 36 months and is settled once a long-term mortgage is in place.