Construction Loan

If you're planning construction and need a loan, Hard Money Direct can help you secure financing that makes sense for your specific project. Before you begin shopping for a construction loan, it's important to understand how these loans work. A construction loan is fully funded at the close of escrow. However, funds are released in draws as needed or according to a specified draw schedule.

Due to the nature of these loans, construction loans do not have the same underwriting guidelines as conventional mortgage loans. Generally, these loans are also structured differently and are not given the same repayment schedule. Instead, most construction loans must be repaid at the time the improvements are completed.

Construction loans are designed to be short term loans. While the particular details of a loan will depend on the lender, most are structured with interest only payments during the construction phase, with the balance due at completion. Sometimes these loans can be structured to switch over to mortgage loans once a certificate of occupancy is in place.

If you are looking for a construction loan, Hard Money Direct can help. As a lender, we offer competitive rates on hard money construction loans. In addition to our own loans, we have access to a network of nationwide lenders who offer hard money loans for a variety of purposes including construction loans, land loans and bad credit loans.