Start your building project with the right financing.
A new construction loan is a type of loan designed to finance the construction of a new commercial or residential building. Typically, new construction loans are short-term financing solutions that provide funds to cover the cost associated with constructing a property from beginning to end. Once the project is completed and construction comes to an end, the loan is usually replaced with long-term financing or a permanent mortgage.
If you acquire a new construction loan, you can withdraw funds as needed to pay for any construction-related expenses. This ends once construction is over, and the funding is then converted with a more permanent financing solution. During the first phase, you usually make interest-only payments, and principal payments are deferred until the loan is converted into permanent financing or paid off.
You will usually need decent credit, a solid financial history, and the ability to show that you can complete the construction project when applying for a new construction loan. We may also consider the experience and qualifications of the builder or contractor when you apply for this type of financing.
At Upstate Bank, we are here to meet all your lending needs. If you have a building project starting in Upstate New York, we can help you secure the funding you need to move forward with this venture.
Our goal is to make the lending process quick, easy, and effective. Contact us today to learn more about securing a new construction loan.