Construction Development Loans
If a borrower wishes to obtain a construction development loan through traditional bank financing, keep in mind that the bank must first determine that the project is economically feasible and will be financially viable. The proposed loan should be evaluated as though the bank will be providing permanent financing. It is best not to rely on a takeout commitment, since any number of circumstances can void the commitment. Accordingly, the bank needs to be convinced that the project will be completed on schedule, within budget, and once completed, be financially viable.
Also, the developer must have the ability to meet the minimum release proceeds, presales, and equity requirements per policy. In addition to project feasibility the bank also must determine that the developer is of good repute, is experienced in the field, and has adequate financial resources in relation to his or her commitments and obligations. The bank should also conduct an analysis of the site, the neighborhood, and surrounding areas.
CNF Exchange is the Best Online Resource for Construction Development Loans
CNF Exchange offers everything developers need to finance their construction projects. Instead of only working with one or two banks, borrowers have access to a vast network of nationwide lenders. As a result, you’re in the position to identify the loan offering with the best available terms. The fact that many lenders are competing for your business also works to your advantage.
CNF Exchange offers you:
- Access to a dedicated senior analyst to help you prepare your loan request and obtain all necessary documents
- Assistance with locating compatible lenders based on our 12-point matching criteria
- Free registration and site access
- Thorough analysis of your financing request to ensure you have everything you need to be a CNF Exchange Qualified Borrower
- Use of convenient and secure document uploading and sharing tool
- Rewards Program to gain free advertising by inviting your contacts to join the site
- Online Press Room where you can promote your successes and market your business