CONSTRUCTION LOANS

It can be difficult to find a good lender to provide financing for construction loans.  Clear Mortgage has experience in construction lending.  We have, in-house, architectural experience, construction experience, entitlement experience, design experience, and development experience.  Most lenders have very little practical experience, and their responsivenes, loan programs, and attitude reflect that.  We have done a lot of speculative construction loans.  We understand what it takes to make you successful.  We look for good plans, a good budget and a schedule of values to guide us through the project.  You pay interest only on drawn funds.  We usually respond to a draw request within 24 hours.  Our specialty is residential construction.  Typically, we expect the client to have the land, plans, and permitting all paid for and Clear Mortgage will cover 100% of the vertical improvement.  Our clients are typically building speculatively with a retail sale being the ultimate liquidity event.

Traditional Commercial Construction Loans

Short-term (usually 3 years) real estate financing secured by a mortgage on the property being financed. This loan is meant to cover the cost of land development and building construction, and is disbursed (1) as needed, (2) as each stage is completed, (3) according to a prearranged schedule, or (4) when some condition is met. Construction loans are paid off from the proceeds of permanent financing (usually for 20 to 30 years), which in turn is repaid from the cash flow generated by the completed building, and is arranged before the construction loan is disbursed. Also called building loan, construction mortgage, or development loan.