Construction Financing
Sometimes the best ROI comes from developing the property yourself.
Why not develop the perfect property with construction or reservation loans.
The costs of construction usually end up running higher than expected. Few people have the extra cash to cover up the additional costs, so many have to abandon their projects. But you don’t have to. With a Construction Loan, you can get the financing you need to complete that piece of real estate.
Financing for Every Stage
Whether you haven’t even bought the land or you are at the foundation level and ran out of funds, you get the chance to complete the building of your dreams.
Limited Liability and Risks
Construction loans are divided into milestones where money is released gradually. If the project gets discontinued, you will only be required to repay the funded milestones.
Flexible Repayment Terms
With Ashpry Capital, the terms are reasonably flexible. You also enjoy guidelines that let you work out your loan terms according to your project needs.
03. FAQ’s
What Is Construction Financing?
One of the distinguishing factors of Construction loans is that they include contingency reserves that could cover unexpected costs during construction. It is also a very secure scheme for the borrower, considering how the loan is divided into milestones, and money is released as different stages of building are achieved. Hence, if there is any pause or glitch in construction, the only debt on the borrower is the cash disbursed towards completed milestones.
How Does Construction Financing Work?
1. Submit an Online Application
To get funded, start with our online application. It’s a quick process – it only takes about 5 minutes. In your application, you will provide basic information on your business, the funds needed and the intended application of funds. You will also give details of your business and finances. This step helps us position the right financing instruments and shapes the path to funds.
2. Undergo Free Consultation
We will connect you to one of our experienced capital specialists who will present the loan programs you can select from. Together, you will explore the options and choose one that is the most suitable for your business.
3. Wait for Lender Selection
At this stage, you’ve done what is required of you. Now, we will find matching lenders and present the opportunity to them in a bid to secure their interest.
4. Wait for Underwriting & Approval
Underwriting is a necessary step that paves the way for approval. An interested lender gets to verify your details, including your income, credit history, and property details. This is for a lender to evaluate the level of risk involved in the transaction. If you qualify, your loan will be approved.
5. Get Funded
Once your lender has approved your loan, the funds are set. You will be required to provide details of the construction project as well as a detailed cost estimate. Once this has been done, the funds will be released.
6. Enjoy Ongoing Support
We don’t stop at funding with our clients. Whether you are looking to refinance or expand, our brokers are there to ensure the capital funding part of the process is handled.
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Frequently Asked Questions
Is it hard to get a Construction Loan?
Getting a construction loan is not difficult as long as you have proper documentation and proof of income stability. Our process at Our Company is straightforward. We are here to make your loan application as stress-free as possible.
What are the interest rates on Construction Loans?
The interest rate on construction loans depends on a number of factors. Typically, they range from 4% to 15% but your credit history, the value of the completed real estate, the construction budget, and your down payment are the real determinants.
Where can I get a Construction Loan?
Many financial institutions offer construction loans. Construction loans are not scarce; getting the right one is. We at Ashpry Capital have connections with a massive network of lenders who can give you access to funds at the best rates.
Will I need a down payment for a Construction Loan?
Construction financing requires you to make a down payment. Typically, the down payment is calculated at 20% of the loan value. We can connect you with lenders that best match your down payment offer.
