680 South Cache Street
Suite 100
PO Box 10400
Jackson, WY 83002
[email protected]
952-545-5000

680 South Cache Street
Suite 100
PO Box 10400
Jackson, WY 83002
[email protected]

Capital Pro 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.