Commercial mortgages are typically taken on by businesses instead of individual borrowers. The borrower may be a partnership, incorporation, or limited company and the assessment of the business can be a more complicated process. Commercial loan approval primary focuses more on the asset class, income and expense and borrower ability to service the loan. Commercial loan up to 80% loan to value contingent on the asset class and location.
Construction loans are on average 85% LTC and on exception basis up to 100% LTC. Clients can receive pre-construction draws for excavation and demolition. Purchasers deposit can be used towards the development – conditions apply.
Construction loans cover land development and building construction costs. Funds can be disbursed on each stage completed, according to a prearranged schedule, or when certain conditions are met. Construction loans are repaid from the proceeds of permanent financing or sale of the asset usually over a period of 24 to 36 months.
CONSTRUCTION LOAN CHECKLIST (Some items may not apply)
- Total gfa and buildable area (sq ft)
- current zoning
- Current project status
- Date purchase and purchase price
- What has been done since purchased
- As is land value
- As complete value
- Current debt stack
- Existing equity
- Loan ask
- Use of funds
- Sales agency
- Exit strategy
- Experience of builder/ developer
Our collaborated partnerships with institutional lenders, CMFG private investors, REIT, LP funds, pension capital, and other mortgage funds has enabled us access to capital without a cap on the dollar amount, therefore we can facilitate transactions of any size.
We have worked with developers and major players across various industries, financing some of the most recognizable structures, commodities, hospitality and brands around the world.
PROJECTS WE WILL CONSIDER
- Raw land
- Single-family residential construction
- Cannabis facility
- Development land
- Hospitality – hotels, motels, and restaurants
- Mixed-use projects
- Multi-unit residential
- Gas stations
- Shopping malls and plazas
- Industrial, apartment and office buildings
- Recreation and resort properties
- Student housing
- Retirement facilities
- Private schools
- Property conversions
“The assurance of working with an experienced team who knows how to structure construction and commercial loans for funding is why so many companies have chosen CMFG”