{"id":9965,"date":"2019-12-19T17:14:44","date_gmt":"2019-12-19T17:14:44","guid":{"rendered":"https:\/\/www.lendified.com\/?page_id=9965"},"modified":"2020-11-03T13:34:03","modified_gmt":"2020-11-03T13:34:03","slug":"construction-loans","status":"publish","type":"page","link":"https:\/\/www.lendified.com\/construction-loans\/","title":{"rendered":"Construction Loans"},"content":{"rendered":"

\"loans<\/p>\n

Construction Loans<\/span><\/h1>\n

Whether you’re a builder or contractor, a small construction company, or even an individual interested in building a new home for yourself and your family, a construction loan might be the perfect financial vehicle to help you do it.<\/span><\/p>\n

However, in today’s market, getting a construction loan isn’t always as easy as it seems. A traditional lender may take weeks to make a decision about the viability of your home construction project, and longer still to decide if you are qualified for their construction loan or construction mortgage.<\/span><\/p>\n

That’s where Santander comes in. We understand the challenges involved in obtaining financing for your home construction project or small business, and we want to help you succeed. With our Flexible Loan program, we can provide you with the smart financing solutions you need to get ahead, allowing you access to the money you need to complete your home construction project in a timely manner.<\/span><\/p>\n

Get Started Right Away<\/span><\/a><\/p>\n

What is a Construction Loan?<\/h2>\n

A construction loan is essentially a short-term loan, but one tailored specifically for use by an individual home builder, or by smaller companies in the construction industry. Construction loans are used to finance either the construction of a new home or real estate project, or they can be used to refurbish or repair an existing home.<\/span><\/p>\n

Construction loans are not meant to cover the entire cost of the project, but are used as a temporary financing bridge to cover the cost of the project during the build time. Typically, after the home is built and construction is complete, the homeowner (or construction company) will obtain a longer-term solution by refinancing the existing construction loan and rolling over into a\u00a0 more traditional mortgage.<\/span><\/p>\n

It is important to note, however, that because a traditional lender or bank may consider your construction project as a risky investment, the interest rate will likely be higher than you might expect from regular mortgages. Also, some construction loans have strict terms that must be adhered to, such as paying the loan off entirely by the time construction is complete.<\/span><\/p>\n

This is why Santander is so well-placed to provide you with the financing you require in a timely manner. We offer a total amount of up to $150,000 on a short-term basis, and the application can be completed in minutes. Not only that, but some of our clients\u00a0 have been known to receive approval in less than 48 hours!<\/span><\/p>\n

Log in<\/span><\/a><\/p>\n

How Does a Construction Loan Work?<\/h2>\n

Construction loans are short-term loans, usually designed to be used over the course of only one year.<\/span><\/p>\n

After the builder has completed the build, the borrower usually does one of two things.\u00a0 First, they may refinance their construction loan into a more permanent mortgage for construction. This means that the new home’s mortgage will be owned by a bank or other traditional financial institution. Alternatively, the construction loan can be paid off by taking out a second loan, sometimes called an “End Loan,” which is essentially a longer-term form of a construction loan.<\/span><\/p>\n

Construction loans have various repayment conditions and rules. Some will require the construction loan to be paid off completely by the end of construction, some only require interest payments to be made on the loan during the build.\u00a0 The conditions will depend on the lender you decide to go with.<\/span><\/p>\n

In some cases, lenders choose to pay the loan amount directly to the construction company undertaking the project, rather than giving the money to the borrower. As each stage of the build is complete, the lender will transfer the payment in installments related to each stage of the building’s development.<\/span><\/p>\n

Why Santander?<\/h2>\n

At Santander we understand that construction companies may need access to cash quickly in order to meet short-term demands. That\u2019s why we offer short-term business loans that are fast, simple, and affordable. Our online application process can be completed in minutes and once you\u2019re approved you can receive up to $150,000 in as fast as 48 hours.\u00a0\u00a0<\/span><\/p>\n

Because home construction investments are considered risky by lenders, the down payment amount from a bank or other lender can be particularly high, sometimes 20% or more. This can present a difficulty for those that have a spotty credit history, or bad credit. This is another reason why Santander is such a good partner. Why wait for months for a bank to grant you approval to complete your building when Santander can help out with a construction loan within the week?<\/span><\/p>\n

Some of the highlights of being involved with us are:<\/span><\/p>\n