Every good business needs professional space that is their own. Whether you’re just starting out, you want to expand your property, or you’re ready to own instead of rent, you need to explore commercial space. Construction can be expensive. If you don’t have the cash flow to fund a complete construction project, various loans are available to you.
At Delancey Street, we can show you how Colorado new construction loans can work in your favor. You can build in Denver, Aurora, Colorado Springs, or anywhere else in the state.
Take Your Project to the Next Level
Imagine finally having the property that you have always wanted. Once you know what you want, you can start building a construction plan. This will make it easier to know what steps need to be taken and how much it will all cost.
Some lenders will provide you with all of the money you need while others will want to obtain all sorts of added information before making a decision. Particularly when you work with a traditional bank, it can be difficult to get the funding. Our goal is to make the process easier for you with our creative financing opportunities.
Once you get a lender to provide you with a new construction loan, you can move one step closer to your goal of having a professional location for your business.
How a Commercial Construction Loan Can Help
You probably don’t have tens of thousands of dollars to throw at a construction project. As a result, you will need to work with a lender to get the money. A commercial construction loan will provide you with the funding in installments.
Traditional commercial mortgages provide all of the money upfront. It also gives you the chance to pay off over 10 years. However, in an effort to be creating with financing, commercial construction loans work for many businesses in Colorado.
You will need to pay for materials, land development, labor, and more. Each time a new step is completed, you will get the funding to proceed to the next step. The beauty is that interest is only charged on the portion of the money that you have already received.
Once the project is done, you have choices for the loan. You can use the property as collateral while making payments on the principal and interest. You can also choose to pay the whole amount back at once. This flexibility allows you to choose what’s right for your business.
Understanding Loan Requirements and Fees
Every lender is different when it comes to Colorado new construction loans. We’re here to help you make sense of it all.
First, you have to look at what the loan is going to cost you. This includes exploring fees, interest rates, and the down payment. A new construction loan is considered high-risk. Ultimately, this causes lenders to want a down payment in order to secure the loan a bit.
Additionally, you have to look at what a lender will require in order to approve you for the loan. This can include construction plans, a listing of all debt, your monthly income statements, and more. Your credit score will also be used to determine what kind of loan you can qualify for in terms of amount as well as interest rates.
When you’re ready to apply for a construction loan in Colorado, contact us at Delancey Street.