Securing a commercial construction loan for various types of commercial real estate can be a difficult process to navigate. This will shed some light on commercial construction loans and demystify the lending process.
Commercial Construction Lending Overview- Everything you need to know about the construction loan process
How much do I need to have down for a project?
The loan is generally 85% of cost or 75% loan to value
Your down payment can come from cash or land already purchased.
Project equity could come from a separate piece of real estate that isn’t involved in the construction project.
Any pre-paid soft costs (architectural, engineering, financing, and legal fees, and other pre-construction expenses) can be included as equity.
What do I need to have ready for the bank to start such a project?
Last 3 years’ Personal Tax Returns
Last 3 years’ Business Tax Returns (Of any business owned by the guarantors over 20%)
Personal Financial Statement (Of any business owned by the guarantors over 20%)
(If Owner-Occupied Business) Last 3 years Business Tax Returns
(If Owner-Occupied Business) Interim year to date Income Statement & Balance sheet dated within 30 days
Building Plans and specifications
Copy of construction budget provided by general contractor OR borrower
Sample of Contractor Contract
Description of Materials form
Have more Questions? Are you located in Washington State?
Contact Paul Long
Call or Text (253) 300.5414 email: email@example.com