Construction Loans Saint Paul MN
Our St Paul based construction loan team is dedicated to providing businesses with quick approval and low rates. We are here to make the experience fast, easy, and affordable for you. We provide a number of financing options including commercial construction loans, single close construction loans, acquisition loans, and permanent financing once the construction is done.
St Paul Commercial Construction Loans
With St Paul construction loans, as with all of our construction financing in Minnesota, our team’s two highest goals are low rates and fast approval.
When an opportunity arises you need to be positioned to strike. Our team can break-down the possible rates, closing deadlines, and what challenges you need to be aware of on a deal in a few minutes.
Rates & Term Length for Construction Loans in St Paul
Commercial construction loans are designed primarily as short term funding. They finance from the development of a property through leasing to renters. Many large traditional lenders will only provide permanent financing on properties after the building is fully leased. This allows the lender to review the history of financial details on an operational commercial property.
Construction loans, on the other hand, fill the gap between purchasing land and obtaining a permanent commercial real estate loan on a completed property. Consequently, construction loans hold a higher risk because they cover a building process where the scenario can rapidly change. Construction costs can increase over projections and contractors can fall behind their promised timelines. Because of a larger risk, construction loans in Saint Paul and throughout Minnesota typically offer higher rates than permanent commercial real estate loans.
Underwriting St Paul Construction Loans
With local commercial construction financing the new property hasn’t been built and so there isn’t any financial track record for it. Consequently, underwriting is based on the project’s plans and financial projections. Alternatively, permanent commercial real estate loans are underwritten based on the real estate’s financial history.
As a result our underwriting team starts by working up a detailed budget analysis of the property or construction project. We analyze the borrowers’ experience, financials of any key investors, and pro-forma. During placement and underwriting of commercial construction loans in St Paul there is commonly a review of tax returns, proforma, budget projections and estimates, construction plans, past tax returns, pro-forma, and a detailed breakdown of how the financing will be alloted during the project. For more information on construction loans in St Paul MN, contact our team today.
Understand your options.
The starting place is to become informed. Once you understand your options, available rates, and timelines you can make good decisions. Our St. Paul MN business loan specialists are here for you - reach out today!