Construction Financing Possibilities
“There Can Be Many Different Ways To Arrange Construction Financing
For Your Project”
As a property owner or builder seeking debt financing for their construction project, one should always keep in mind that there really is no such thing as a standardized construction loan and that construction financing can be arranged in a number of different ways.
Many times someone will call me up with a specific request for construction financing along with a predefined way to put the money in place, and after some discussion it becomes apparent that there are other approaches to consider in addition to their current thinking.
Basically most construction loans per say are for a specific amount of financing, secured by a mortgage registered against the property.
And while we can say this is the typical form of construction financing, there are lots of variations that can come into play.
For instance, if a builder or property owner has another property, it may be far cheaper and simpler to get a home equity loan against the available equity than getting a traditional construction loan in place.
Or, if the amount of funds required is small, a personal term loan or additional line of credit may provide enough capital at much cheaper rates and with more flexibility when it comes to utilizing the funds.
The same can be said in choosing between a bank or institutional construction loan and one provided by a private mortgage lender.
The listed cost of financing will always be cheaper through a bank, but in the end it may not be the best fit for the project and may not end up being the cheapest either once all the dust is settled.
For individuals trying to figure out how to finance a construction project they are planning or are in the middle of, it can be easy to self assess incorrectly the best approach to take to meet the requirements of the project for the lowest cost.
Because of the potential different approaches that may be taken, it makes a great deal of sense to be working with a construction mortgage broker who can review everything you have to work with as well as your construction project requirements, and then propose financing options that provide the most benefit and value to you.
Utilizing this type of expertise, especially if arranging your construction loan is an infrequent or one time exercise, can end up being a considerable time and money saver in the long run.
If you would like to discuss construction financing approaches for your next project or one you’re currently working on, please give me a call and we’ll go through everything together.
Click Here To Speak With Construction Mortgage Broker Joe Walsh
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel