Chat with us, powered by LiveChat Illinois New Construction Loans | Delancey Street

Illinois New Construction Loans

We empower entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity


High LTV

We fund hard money loans up to 80-90% LTV with no issues.



We promise to treat you like a partner


No $ Limit

No limits on what we can do for you.

Business Funding

Our client was a trucking company based out of NY, that needed quick funding. In 24 hours, we arranged $100,000 in funding.

100% Funded!

Residential Refinance

We funded a purchase in California, for $1.2 million with 65% LTV. We helped the developer with with a 11% loan with balloon payment.

100% Funded!

Lawsuit Funding

Client was injured in a car accident and needed a cash advance on the future value of his lawsuit. In 48 hours, our funders wired funds over.

100% Funded!


Hear from people we've helped

Delancey Street makes lending easy. They took a chance on me when no one else would.

Leo kovacz

Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.
Delancey Street makes lending easy. They took a chance on me when no one else would.

Kevin Johns


Industries We Service

Residential Real Estate
Commercial Real Estate

Our team is always available, and ready to help

Our team of industry experts is ready to help with all of your business needs. Whether you’re looking for a reliable hard money lender, looking to go public via a reverse merger, or need private capital for a venture – we can help.

Industry Experts

Our team consists of extremely qualified industry experts

Quick Service

We work diligently, and quickly, to help you

Illinois New Construction Loans

Commercial Construction Loans Explained
At some point, growing businesses expand to the point that they need to build new facilities or at least update existing ones. For example, one business owner might want to operate out of their own office building instead of renting commercial space; another might want to build a new manufacturing area to keep up with increasing orders. Whatever the reason, when spending money on real estate development is the next step in an organization’s evolution, a commercial construction loan can help get the project done.

How commercial construction loans are different

With a traditional loan, the entire amount amount being borrowed is given from the lender to the borrower in a lump sum to be paid back at interest over a fixed period of time. With a commercial construction loan, the lender gives money for each phase of the construction project at hand while making an inspection at each step to determine that the money is being used wisely. For example, a certain amount of money might be loaned out to prepare the construction site, then, if that goes well, another payment is given to complete the foundation of the building, and so on until the project is complete.

As the construction occurs, the borrower is only responsible for paying back the interest on each step of the loan. Once the project is complete, generally the borrower gets a mortgage where they can pay back the principle of the loan over time with the completed building as collateral, or they can pay it off in one lump sum if they have the money to do so. Commercial loans are given for renovations, expansions, buying land and pretty much any other type of construction or real estate project.

Interest rates and other costs to borrowers

A commercial construction loan is a high-risk type of loan, so interest rates are not always cheap. In fact, borrowers should expect to pay interest rates at between four and 12 percent, and the better the borrower’s credit rating, the lower the interest rate. Because there is a lot of oversight and processing required on the part of the lender, there are usually a number of fees associated with a commercial construction loan. These include project, fund control, inspection and documentation fees.

Another major expense associated with a commercial construction loan is the down payment, which takes some of the risk off of the lender. In general, the down payment is between ten and thirty percent of the project; it is rare for a lender to provide the money for all of the costs.

Who qualifies

Not just any project will be green-lighted by a financial institution for a commercial construction loan. For starters, lenders look at an applicant’s credit score and are usually looking for a number at or above 600, depending on the circumstances of the application. The credit score of the business itself, if applicable, will also be used as a criteria. Furthermore, lenders want to see that the applicant has a low debt-to-income ratio, which is the relationship between how much money the business owes to how much it is taking in.

Lenders are very careful in determining eligibility. Applicants should be prepared to submit not only a detailed description of their business and its financial health but also of the proposed real estate development. It generally takes at least a few weeks to process a request, and supplemental documentation may be required during that time. In conclusion, taking on new real estate development is big step, but a commercial construction loan can make it happen.

Hard Money Loans

Need funding for your next project?

Complete Our Hard Money Loan Application
Call Now