Construction Loans

After the 2008 financial meltdown, construction financing all but dried up.  Fear drove the market place and for a lender to forecast 18 – 36 months out was too risky.   Today the market has settled a bit.  Construction funds are available on solid projects with strong borrower financial's.  Location and site use are important to securing funds.  For example, highly populated affluent areas like Mid-Town Manhattan or West Los Angeles are in higher demand to finance than smaller or economically depressed MSA’s.  A lender will require that the developer has a reasonable equity position prior to providing a commitment letter.  This amount varies depending on the project; however, best case is a minimum of 20% into the finished project.  Construction projects must make sense for the area and the developer must be financially fit with a long resume.  Lenders will perform a gap analysis to define market demand and absorption rates.  This will assist in determining saleability or, if held, stabilized revenues. 

In addition to Institutional Investors and HUD, Centurion Bancorp has relationships with aggressive Wall Street Hedge funds and can secure fast funding's.

• Multi-family loan LTV's up to 90% through HUD
• Loan terms up to 5 years
• Flexible terms that can roll to permanent financing
• Potential for non-recourse multi-family loans
• Low/no pre-pay penalties at roll over
• Financing for Mixed-Use, Apartments, Retail and Hospitality
• Access to fast funds at higher rates and fees.