In addition to offering traditional long term financing for the purchase and improvement of existing buildings, we also have a highly competitive and easy to use construction lending program. Some of the key features of this program are:
- Automatic conversion of the construction loan into a long term loan at completion of construction, eliminating the need for two loan closings.
- Interest-only payments during the construction period.
- Loan advances are made only for what is needed during construction, which reduces costs since interest is only paid on the amount borrowed. The entire loan balance does not have to be borrowed at the time the loan is closed.
- The interest rate is fixed at the time of loan approval not only for the construction period but for the long term loan as well, for up to five years, which provides protection to the borrower from a potential rise in interest rates.