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Need Help With Construction Lending?


admin - January 13, 2022 - 0 comments

 We Have a Solution For You.

Construction lending is a very fast-moving field. With so many different factors at play, it can seem challenging to get started with lending. Thankfully, CodeFi can help simplify the construction lending process. 

Our innovative platform makes it easy for construction contractors and developers to get what they need. We work closely with teams to help streamline workflow and make the lending process a breeze. 

We understand our clients have to juggle many projects, so they must have lending software that works with them. CodeFi does just that, which helps our clients achieve more in less time.

What Types of Construction Loan Do I Need?

Construction loans cover the cost of the property, construction, land, and labor needed to build a business or home. Construction lending is an effective way for property owners to build their property, allowing them to cover the cost of all of the resources needed. 

There are many different construction loans, each with its interest rates, terms, and conditions. We suggest that home builders or property owners look over the conditions of their loan before securing it. 

By taking a close look at the finer details, a property owner will ensure that the loan best meets their individual needs.

There are two major types of construction loans that builders and developers should be aware of before starting their project:
  • Construction-to-permanent
  • Construction-only
We’ve broken these two types of loans down below:

Construction-to-Permanent

This type of loan requires a person to take out a loan to cover building costs. Once the building process finalizes, this loan then converts into a mortgage. 

This type of loan has a duration of 1 or 2 years, which has an interest that accrues monthly. Once the mortgage portion of the loan begins, the cost covers interest and principal payments.

Construction-Only Loan

Construction-only loans provide the buyer with enough money to complete building processes. The buyer must take responsibility to pay the loan in full and find an appropriate mortgage afterward. 

These loans pose a considerable risk, as they do not guarantee a mortgage. If a person’s financial situation grows worse during construction, a mortgage may not seem possible afterward. 

How Do I Know What Loan Is Right For Me?

Deciding which loan can benefit a project is a tricky decision to make. People should consider their financial situation and other factors before taking out a loan. 

While some loans may meet the needs of specific lenders, they might not be suitable for others. A project manager should first speak with their team or consider their financial situation to prevent financial risk. 

Our team at CodeFi would be happy to discuss the solutions we have available to help streamline the loan process. 

Need Results? Check Out What Our Clients Have To Say:

“CodeFi’s software makes it easy for me to communicate progress and get paid sooner.”

— General Contractor, Central Florida

We understand our customers’ needs, which has helped us develop comprehensive solutions for any project’s needs. 

Our software, at its core, is customer-driven. Our team values our customers greatly, leading us to improve our product to meet increasing needs and demands constantly. 

Want to Learn More?

Try CodeFi’s innovative platform for yourself! Ask our team about a demo today. 

If you are interested in our software, feel free to reach out to our team today. We would love to help your team with your future projects. You can reach out to us via email or over the phone.

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