Massachusetts New Construction Loans
Deciding how you want to proceed with your business is a crucial step. You may be tired of renting a building. You may also be looking to buy a building to coincide with opening your business. Whatever the situation might be, it’s important to have space that you can call your own.
There are plenty of options available. Whether you’re looking to build from scratch or expand an existing property, you will want to look at the costs involved with the project. At Delancey Street, we can show you the creative financing options that are available to you.
With Massachusetts new construction loans, you can get started in Boston, Salem, Worcester, or anywhere else in the state.
Why Massachusetts New Construction Loans Should Be Considered
It might take hundreds of thousands of dollars to build the property that you want. You may be prioritizing a storefront, office space, or even a warehouse. Whatever it is, you need a construction plan. From there, you have to figure out how you’re going to pay for it. You likely don’t have the money to pay for the whole thing up front.
New construction loans in Massachusetts can provide you with the funding that you need.
What You Need to Know About a Commercial Construction Loan
Many businesses choose commercial construction loans over commercial mortgages. There are a few reasons for this.
First, commercial mortgages can be difficult to obtain. The lender is typically a traditional bank that wants you to fill out an extensive application. Plus, they’re going to look for you to have an above-average credit score.
Second, a commercial mortgage doesn’t have much flexibility. You will get the entire amount as a lump sum in the beginning and provide you with a 10-year repayment plan. In some instances, the mortgage will only be for existing properties, too.
A new construction loan allows you to establish a schedule for when you’re going to get the money. After each step is performed, an inspection is conducted before more funds are released. When it’s done, you can pay in full or finance the amount you have borrowed with the property serving as collateral.
What to Look for in a Lender
There are a lot of lenders that will provide you with new construction loans in Massachusetts. It’s important to consider what their reputation is so that you can decide if you want to do business with them.
Every lender is going to vary based on what they offer as well as the cost of doing business with them. You will want to look at a few things:
- The required down payment
- The number and amount of fees
- The interest rate assigned to your loan
New construction loans are considered high-risk, so it’s important to look at what kind of down payment will be requested of you. Further, the fees and interest rate will impact how much you spend on your loan overall.
You don’t have to do all of the research on your own. Delancey Street lenders will make it easy for you to find a loan that works for your business in Massachusetts. The entire process is personalized to get to know you and your financial needs.
Contact us today to get started on a new construction loan so that you can take your business to the next level.