Projects we finance
- Ground-up multifamily, mixed use, retail and industrial
- Heavy renovations and change-of-use conversions
- Owner-occupied buildings, including through SBA 504
- Construction-to-permanent loans that convert to long-term debt at completion
How construction loans are sized
Lenders look at loan-to-cost (the loan as a share of total project cost, including land, hard costs, soft costs and interest reserve) and loan-to-value on completion. Your experience as a developer, your general contractor and how much cash you put in all shape the terms. We package those strengths up front so lenders see the full picture.
What lenders will ask for
- Plans, budget and construction schedule
- Entitlement and permit status
- General contractor contract and credentials
- Your development track record
- Pro forma rents and an exit plan (sale or refinance)
Permits not finished yet? That doesn't have to kill a deal. In one recent Walnut Creek retail purchase, the first lender denied the loan because renovation permits weren't ready. We placed it with a lender who would close. Read the construction loan guide to see how draws and reserves work.
Terms shown are typical market ranges across our lender network, not a commitment. Your actual terms come in writing after we review your deal.
Recent closings
Solved: Renovation permits weren't ready, so the first lender denied it. We found one that would close.
Solved: Other lenders declined because IRS taxes had to be paid off from loan proceeds.
Frequently asked questions
How much do I need to put down on a construction loan?
Expect to contribute 15% to 25% of total project cost in cash or land equity. Experienced sponsors and strong pre-leasing can lower that.
How do construction draws work?
The lender releases funds in stages as work is completed and inspected. You pay interest only on what has been drawn. See our construction loan guide.
Can I get a construction loan without development experience?
It's harder but possible, usually with a seasoned general contractor, more equity, or an experienced partner. We'll tell you honestly what lenders will need.
What happens when construction is finished?
You either sell, convert to permanent financing with the same lender, or refinance into long-term debt once the property is leased.