Commercial Real Estate: Bridge Loan vs Permanent Financing

Choosing the right financing can make or break a deal in commercial real estate. Whether you are acquiring, renovating, or stabilizing an asset, the timing, cost of capital, and exit plan determine which structure fits best. This guide explains the differences between short-term and long-term options, when each is most effective, and what to consider before making a commitment. You will get plain-English comparisons, practical underwriting tips, and a clear path from offer to closing so your project stays on schedule and within budget.

Commercial Real Estate Financing: Why Timing Drives The Choice

In fast markets, speed and certainty of execution matter more than rate alone for commercial real estate decisions. Therefore, your capital choice should match the calendar of due diligence, renovations, lease-up, and stabilization, not just the interest line on a term sheet.

Bridge Loan Basics: Speed, Flexibility, Purpose

Prospective borrowers often ask what is bridge loan vs mortgage when they face short deadlines. A bridge product prioritizes quick approvals and flexible draws so you can close, execute, and then refinance once the plan is complete.

Understand how bridge loans work when equity is trapped in a listed residence. Use short-term proceeds to fund the next purchase while the sale clears, then retire the interim balance after closing.

 

Permanent Loans: Where They Fit In Commercial Real Estate

Once an asset is stable, predictable amortization and lower coupons fit commercial real estate that is ready for the long haul; consequently, longer terms and clearer covenants support steady operations and simpler cash-flow planning.

Comparing quotes requires more than the headline rate for commercial real estate borrowers. Additionally, you should map fees, prepayment language, escrows, and required reserves to the project’s timeline so the true annualized cost is visible.

Sponsors shopping for commercial real estate loans in Boston, MA, should organize their current financials, rent rolls, scopes of work, permits, and insurance before making their first calls. As a result, underwriting proceeds more quickly and with fewer follow-ups.

Lenders that specialize in commercial real estate loans in Boston MA will also want a realistic schedule of improvements with credible bids. Moreover, clear evidence of sponsor experience shortens the path to committee approval.

Decision Points: Short-Term Or Long-Term

Commercial real estate in Boston MA

Knowing when to choose bridge loan financing starts with your scope and milestones. If value unlocks within months, a short-term facility can be efficient as long as the refinance or sale path is real and documented.

A second look at bridge loan financing is wise if rates, labor, or materials shift mid-project. Therefore, rerun scenarios with updated costs and add a contingency so that your exit still pencils.

Market Access And Local Context

Permitting time frames, inspection availability, and vendor lead times can affect schedules in Boston MA. Consequently, your calendar should include buffers for reviews, reveal dates, and seasonal constraints.

For borrowers who want guidance from the first model to the closing memo, FinanceBoston, Inc. can structure terms that align with your timeline and exit plan. Furthermore, a single point of contact keeps diligence organized and predictable.

Buyer Transitions: Practical Moves

Explaining how bridge loans work to partners and agents prevents last-minute surprises. Additionally, calendar reminders for lock periods and document refreshes help keep both transactions aligned.

Some owners still compare what a bridge loan is vs a mortgage after stabilization. In practice, a well-timed take-out replaces short-term flexibility with long-term payment certainty that fits a steady property plan.

Commercial Real Estate Exit Plans: From Bridge To Permanent

Clear exit math is the backbone of commercial real estate financing choices. Therefore, you should track DSCR, LTV, and required seasoning so the transition from short-term to permanent feels seamless instead of rushed.

FAQs About Commercial Real Estate

What documents should I assemble first for a short-term facility?
Start with current financials, a detailed scope, firm bids, rent rolls, insurance, and entity records. Additionally, line up third-party reports early to avoid scheduling bottlenecks.

How are rates typically different between short- and long-term options?
Short-term products are usually priced higher due to execution risk, while stabilized financing tends to be lower. Consequently, the total cost must be weighed against the project timing and flexibility needs.

Can I underwrite a refinance before the completion of lease-up?
You can model it, but permanent lenders underwrite to in-place income and covenants. Therefore, be conservative and include a buffer for timing slippage.

What happens if my project timeline slips past maturity?
Discuss extensions and fees before closing so options are clear. Moreover, maintain frequent updates with your lender to prevent last-minute surprises.

Do interest reserves make sense on renovation deals?
Often yes, especially when income is interrupted. As a result, you protect cash flow and reduce the risk of payment stress during construction.

How should I compare two seemingly similar offers?
Normalize rate, fees, prepayment terms, escrows, reserves, and covenants over your expected hold. Additionally, stress-test delays to see which offer stays economical under pressure.

Do you want to know which option is best for you? Contact FinanceBoston, Inc. for more information and expert guidance so you can make an informed decision.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/

Navigating Inflation in Commercial Real Estate

Inflation’s impact on commercial real estate (CRE) is multifaceted — capable of both increasing operating income and elevating costs. In 2025, FinanceBoston Inc. guides clients through these dynamics with updated insights and proactive strategies as a trusted commercial real estate advisor and a leader in commercial real estate financing Boston.

Key Trends & Context for 2025

Moderate yet persistent inflation: U.S. inflation currently hovers around 2.7%, well above the Fed’s 2% target, and remains sticky in sectors like services and housing. Analysts forecast inflation to stay between 2.5% and 2.6% through 2025

Tight lending conditions: Banks are tightening underwriting for commercial real estate loans — in April 2025, 9.0% reported stricter lending standards, compared to 7.3% in January. That’s a dramatic shift from April 2024’s 20.2%.

CRE fundamentals showing resilience: Despite headwinds, CRE fundamentals remain firm. Sectors like industrial and multifamily are holding steady amid economic uncertainty.

Office sector remains under pressure: Office asset values continue to decline. In 2024, office prices dropped 11%, and further declines through 2025 are expected, with national office vacancy near 20%.

Borrower-Focused Strategies for 2025

Strategy – Why It Matters in 2025

• Lock in fixed-rate financing – Guards against rising rates as borrowing costs stay pressured, especially on commercial real estate loans.
• Prioritize stabilized, income-producing properties – Industrial and multifamily sectors offer more predictable cash flow in a tight rate environment.
• Enhance underwriting transparency – Prepare robust DSCR projections and NOI defensively to overcome tighter bank standards for commercial real estate loans.
• Add inflation protection to lease agreements – Pass through cost increases via indexed rent escalations in new or renewed leases.
• Leverage more flexible capital sources – Consider private lenders or life insurance companies offering terms suited to current market conditions, including options for commercial real estate financing Boston.
• Monitor refinancing timelines – With many lenders planning rate cuts late in 2025, timing refinancing matters more than ever for commercial real estate financing Boston decisions.

FAQs: Inflation & Commercial Real Estate in 2025

Commercial real estate loan

Is commercial real estate still a good hedge against inflation in 2025?
Yes — CRE remains a partial hedge through rent escalations that boost NOI, although it’s not perfect given rising yields/cost of debt. Working with a seasoned commercial real estate advisor can help set realistic expectations.

Which asset types are outperforming under inflationary pressure?
Industrial and multifamily are outperforming due to stronger demand and flexible lease structures, while office remains the weakest segment.

How are lending standards changing for CRE borrowers?
Lending is tightening — April 2025 saw 9% of banks tightening standards, up from 7.3% in January, which affects access to commercial real estate loans.

What’s happening with the office market in 2025?
Still under duress — values dropped 11% in 2024, and vacancy rates remain near 20%, with expectations of continued weakness.

How should borrowers adapt leases?
Implement rent escalations indexed to inflation or CPI to preserve NOI amid cost pressures; a commercial real estate advisor can help structure clauses that align with financing covenants.

Will refinancing become easier later in 2025?
Possibly — experts anticipate the Fed might lower rates toward the end of 2025, which could ease borrowing pressure and improve terms for commercial real estate financing Boston strategies.

FinanceBoston Inc. Is Here to Help

Let FinanceBoston Inc. help you navigate 2025’s inflationary landscape with confidence as your commercial real estate advisor for commercial real estate loans and commercial real estate financing Boston:

Tailored financing strategies

• Lease structuring with inflation protection
• Flexible lender matchmaking
• Timing guidance aligned with market cycles

Ready to secure financing that shields your investment from inflation’s impact? Contact FinanceBoston Inc. today for a personalized strategy session.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/

Why FinanceBoston, Inc. Is a Top Resource for Real Estate Investors

Located in Boston (and with a Miami affiliate), FinanceBoston, Inc. is a boutique real estate capital markets advisory firm that caters to real estate investors and developers seeking creative, tailored financing solutions. Here’s why it’s a standout partner:

1. Deep Expertise & Strategic Partnership

FinanceBoston offers more than just funding—they act as your outsourced investment banking team, guiding clients from the early stages of permitting and entitlement through to negotiation, closing, and even post-close capital strategy updates.

2. Broad Spectrum of Financing Options

Whether you’re acquiring a new property, refinancing, renovating, or developing, FinanceBoston Inc. offers an arsenal of financing solutions:

• Debt vehicles like acquisition loans, construction loans, and cash-out refinancing
• Equity options including joint ventures, preferred equity, mezzanine financing

3. Access to a Diverse Capital Network

FinanceBoston connects investors to both institutional lenders and private capital sources—domestically and internationally—helping to secure the most favorable terms possible.

4. Versatility Across Property Types and Development Stages

Whether it’s raw land, shovel‑ready sites, stabilized income‑producing assets, or complex mixed‑use developments, FinanceBoston’s expertise spans the full range of asset classes and project phases.

5. Proven Track Record of Success

Commercial real estate loan

The firm highlights recent transactions—such as arranging $14.7M in financing for East Boston condominiums, $6.55M for adaptive reuse in Rhode Island, and $16.6M for a Somerville luxury project—demonstrating consistent performance and reliability.

Frequently Asked Questions (FAQs)

1. What types of funding does FinanceBoston offer investors?
They provide a broad suite, including acquisition financing, construction loans, cash-out refinancing, mezzanine debt, preferred equity, and joint venture structures.

2. Do they work with all types of properties?
Yes—FinanceBoston supports investors across multifamily, office, industrial, retail, hospitality, mixed‑use, land, and more.

3. Are they limited to Boston-based projects?
No—they have a Boston headquarters and a presence in Miami, and they also facilitate access to international capital sources.

4. What’s unique about their approach to financing?
They combine real estate insight with finance and investment expertise, acting as a hands-on partner throughout the project’s lifecycle—not just arranging capital, but aligning it with strategic business goals.

5. Can they support complex or unconventional financing needs?
Absolutely. They have a reputation for structuring creative capital solutions that other firms may avoid.

6. How do I get started working with FinanceBoston?
Visit their website to request financing or schedule a consultation—or reach out directly via their Boston office at (617) 861‑2041.

If you’re looking to supercharge your next real estate venture with flexible, inventive financing and a team that champions your success every step of the way—consider partnering with FinanceBoston, Inc.

Here’s how to get started:

1. Visit FinanceBoston’s website and click Request Financing.
2. Share your project details, property stage, and funding needs.
3. Schedule a strategic consultation to explore the capital and advisory options tailored to your goals.

Let FinanceBoston, Inc.unlock your next opportunity—contact them today and take your real estate ambitions further.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/

Commercial Construction Loan Interest Rate Trends in 2025

In 2025, commercial construction loan interest rates remain a central consideration for companies seeking to build new facilities, expand operations, or reposition assets. After several years of higher rates driven by inflation and Federal Reserve policy, borrowing costs are still above the ultra-low levels of the 2010s—but signs of stabilization are emerging.

The Secured Overnight Financing Rate (SOFR), which serves as the benchmark for most commercial construction loans in Boston MA, has held steady in the mid-4% range. Lenders then add a spread based on project type, sponsor strength, and market risk, resulting in effective borrowing costs typically in the 7%–10% range. While elevated compared to past years, this environment is becoming more predictable, allowing businesses to move forward with greater confidence.

At the same time, lenders are maintaining selective but improving credit conditions. Construction and land development loans are still scrutinized closely, but strong projects with solid sponsors and well-documented pro formas are finding receptive financing partners.

Key Trends to Watch in 2025

1. Policy-Driven Rate Adjustments

The Federal Reserve has signaled only modest potential easing this year. Businesses should not expect dramatic rate cuts but can plan for a slightly friendlier lending environment as inflationary pressures cool.

2. Tight but Selective Lending

Banks remain cautious, requiring conservative loan-to-cost ratios, healthy interest reserves, and strong contingency planning. However, well-prepared companies are securing funding at competitive terms.

3. Alternative Capital Sources

Non-bank lenders, private equity, and debt funds continue to play a larger role, particularly for projects with unique risks or higher leverage requirements.

4. Exit Strategy Considerations

With refinancing markets showing renewed activity—especially in multifamily and industrial sectors—companies must align construction financing with realistic take-out options.

5. Increased Focus on Project Readiness

Lenders are rewarding businesses that demonstrate readiness with permits, pre-leasing, and strong financial backing.

FAQs About Commercial Construction Loan Rates in 2025

Mixed-use loans in Boston MA

1) How are construction loans typically structured in 2025?
Most loans are floating-rate, tied to SOFR plus a lender spread, with interest-only payments during construction.

2) What interest rates should I expect?
Depending on risk, effective rates often fall between 7% and 10%, with stronger sponsors securing better terms.

3) Are lenders willing to finance new construction right now?
Yes—though selectively. Strong projects with experienced sponsors and clear exit strategies are being funded.

4) What industries are favored by lenders?
Multifamily, industrial, logistics, and select retail projects are seeing strong appetite. Office developments remain more challenging.

5) Should I wait for rates to drop before starting a project?
Not necessarily. Market consensus suggests only modest rate relief in 2025. Companies with solid economics should move forward with financing strategies that work under today’s conditions.

6) Can alternative lenders help if banks decline?
Yes. Debt funds and private lenders can provide creative solutions, though often at higher spreads.

How Finance Boston Inc. Can Help

Navigating today’s lending environment requires expertise, strong lender relationships, and a clear capital markets strategy. At Finance Boston Inc., we help companies:

• Design optimal capital stacks tailored to your project.
• Secure competitive financing through our extensive lender network.
• Package loan requests to meet credit committee expectations.
• Advise on hedging and exits to protect your long-term interests.

Ready to build or expand in 2025? Contact Finance Boston Inc. today to schedule a consultation and explore your best financing options.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/

What Are the Key Requirements for Commercial Construction Loans?

Starting a new build can transform your business. However, getting approved for commercial construction loans takes planning, clear numbers, and the right documents. This guide explains what lenders look for, why each requirement matters, and how to prepare a strong, lender-ready file. Additionally, it adds practical checklists you can follow today, so you can move from concept to closing with fewer surprises. For tailored guidance, FinanceBoston Inc. helps owners structure deals and avoid common pitfalls while keeping projects on schedule.

Why Lenders Care About Your Credit Scores

Credit signals risk. Lenders use both business and personal credit to judge how you handle debt and cash flow. A higher score usually means easier approval, better terms, and lower costs. Conversely, weak credit can trigger higher down payments, stricter covenants, and tighter draw controls. Therefore, shore up credit early, and do it before you apply.

Credit Score Benchmarks for Commercial Construction Loans

While each lender sets its own cutoffs, many look for strong payment history and low utilization. Often, a business score in the upper ranges and a personal score in the high 600s or low 700s helps. Because underwriters weigh trends, not just snapshots, show recent improvements and explain any past issues with documentation. This context can preserve eligibility for commercial construction loans even if your scores are still recovering.

Quick Steps to Strengthen Credit Before You Apply

• Pay every invoice and tradeline on time, then monitor reports monthly
• Keep credit utilization under 30 percent, and, if possible, lower
• Limit new inquiries before and during underwriting
• Dispute errors with documentation, and add brief explanations for resolved issues

Down Payment Rules for Commercial Construction Loans

Because construction carries execution risk, lenders want you invested. Typically, down payments range from 20 to 30 percent of total project costs. A stronger borrower profile can push the requirement closer to 20 percent. On the other hand, higher-risk projects or limited experience can push it higher. As a result, build your equity stack early, and verify sources of funds. Lenders will ask.

Build a Bank-Ready Project Plan

A complete plan helps underwriters visualize success and control risk. It should read like a roadmap from groundbreaking to lease-up or sale. Moreover, it should make clear who does what, when, and for how much.

Include these elements:

• Scope, goals, and deliverables with milestones and dates
• Team roster with resumes, licenses, and past project outcomes
• Feasibility study with market demand, comps, and exit strategy
• Complete set of plans and specs suitable for permitting
• Draw schedule aligned to milestones and inspections
• Risk management plan, including contingencies and procurement timelines

When you show that the project team has delivered similar builds on time and on budget, you reduce perceived risk and improve your chances with commercial construction loans.

Create a Realistic Budget and Contingency

Commercial Construction Financing

Lenders want detail. Break out hard costs, soft costs, and fees. Then add a contingency, usually five to ten percent, to absorb shocks such as material spikes or weather delays. In addition, confirm vendor quotes, update them as markets shift, and show evidence. A transparent budget shortens underwriting and supports smooth draws later.

Show Proven Experience With Similar Builds

Experience matters. If your firm or your general contractor has completed projects of similar size, type, and complexity, highlight those results. Provide photos, completion certificates, leasing or sales performance, and references. Furthermore, explain how those lessons inform your current project plan. This proof can unlock better pricing and more flexible structures for commercial construction loans.

Collateral Lenders Commonly Require for Commercial Construction Loans

Most lenders secure the loan with the land and improvements. They may also file on fixtures and assign leases and rents. Sometimes, they request additional collateral or limited guarantees, especially on complex projects or when leverage is higher. Clarify collateral early. Then align it with your capital stack to avoid conflicts with equity partners.

Financial Statements You Will Need

Underwriters measure repayment ability and liquidity. Prepare to provide, at a minimum:

• Business tax returns, income statements, and balance sheets
• Year-to-date financials with comparatives
• Detailed cash flow statements
• Personal returns and statements for guarantors
• A sources-and-uses statement that matches the budget and the draw schedule

Additionally, include a 12- to 24-month operating pro forma. For pre-leased projects, attach signed leases and estoppels. For merchant builds, add broker opinions, sales comps, and an exit plan. This package helps the lender frame risk and size the loan correctly for commercial construction loans in Boston MA.

Insurance Coverage Lenders Typically Require

Insurance protects everyone. Requirements vary by project, but lenders commonly ask for:

• Builder’s risk insurance for materials and work in progress
• General liability insurance for property damage and bodily injury
• Workers’ compensation for all on-site labor
• Professional liability for design professionals, as applicable
• Commercial auto, if your operations include insured vehicles
• Property and title insurance for closing and thereafter

Coordinate with your broker early. Then budget premiums and endorsements so coverage never lapses, especially before critical inspections or draws.

How Draw Schedules, Inspections, and Interest-Only Periods Work

During construction, lenders fund in stages. You submit a draw request with invoices, lien waivers, and a progress report. The lender or a third-party inspector confirms completion. Then funds are released. Because interest accrues on disbursed amounts only, this structure helps manage carrying costs. Finally, at completion, many facilities convert to mini-perm or permanent loans, which can stabilize cash flow while you lease up or market for sale.

Common Mistakes That Slow or Sink Approvals

• Vague budgets and missing backup for major cost items
• Incomplete plans, unresolved permits, or zoning questions
• Weak liquidity with no room for contingencies
• Unclear exit strategy that leaves repayment uncertain
• Inexperienced contractor without relevant project history

Avoid these pitfalls with a tighter plan, stronger documentation, and a clean narrative. For extra support, FinanceBoston Inc. can review your file and flag gaps before you submit.

Frequently Asked Questions About Commercial Construction Loans

What documents should I prepare first?
Start with up-to-date business and personal financials, a detailed sources-and-uses budget, plans and specs, permits in process or issued, contractor agreements, the draw schedule, and evidence of equity funds. Because lenders verify, keep statements and quotes current.

Can an LLC qualify for these loans?
Yes. Lenders routinely lend to LLCs that hold the project. However, they may also require guarantees or additional collateral depending on leverage, experience, and risk. Therefore, discuss structure and guaranty options early.

How long are the terms and how do payments work?
Most facilities run 12 to 36 months. During construction, payments are interest-only on funds advanced. After completion, you may refinance into permanent debt or sell. Consequently, your exit strategy should match the loan’s maturity.

Do lenders require pre-leasing or presales?
Sometimes. Pre-leasing or presales can reduce perceived risk and improve pricing. Even so, strong market data and a credible leasing plan can also support approval without signed commitments.

How can I lower my down payment?
Improve credit, add experienced partners, secure cost-saving vendor agreements, and demonstrate demand with letters of intent. In addition, consider mezzanine financing or preferred equity if appropriate for your capital stack, while keeping overall leverage within prudent levels for commercial construction loans.

Call FinanceBoston, Inc. now to schedule a free feasibility review, share your plans and budget, and receive a tailored term sheet recommendation within a short timeframe. Your project deserves momentum. Get expert help today.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/

7 Key Steps in the Commercial Construction Loan Process

Securing the right financing can be the deciding factor between a smooth build and a project delay. For developers, contractors, and business owners, a commercial construction loan offers the funding needed to purchase property, construct new buildings, or expand existing structures. Unlike standard business loans, these loans are for the complexities of construction, with unique funding schedules and repayment terms.

If you’re preparing to apply for a commercial construction loan, FinanceBoston Inc. can help. And, if you want a clear understanding of each stage, then this guide will walk you through the essential steps. With that, your project keeps moving from application to completion.

Meet with a Commercial Construction Loan Officer

The process begins with a meeting between the borrower and a loan officer. During this stage, the discussion covers all initial documentation requirements and the structure of the loan.

Specifically, three main differences between a commercial construction loan in Boston MA and a standard business loan are typically covered:

• Fund disbursement – Rather than receiving the entire loan amount upfront, you will get funds in stages according to a draw schedule, triggered by reaching construction milestones.
• Loan interest – Payments begin with interest-only installments, calculated on the amount of funds disbursed rather than the full approved loan balance.
• Repayment – Once construction is complete and funds are fully disbursed, the loan balance becomes due. Often, the borrowers transition to a commercial mortgage for longer repayment terms and smaller monthly payments.

Starting with this meeting ensures you have a clear picture of the timeline, requirements, and expectations before moving forward.

Provide Detailed Project Information

Loan officers need to assess the viability of the project before funding is approved. That requires a comprehensive set of construction documents and details, such as:

• Building plans and specifications

• Detailed construction budget

• Material and labor cost breakdowns

• Project timelines

• Zoning approvals

• Contracts with builders and subcontractors

• Company operating history

• Pro forma financial projections

And, providing these documents early helps the lender evaluate whether your project qualifies for financing and what loan options may be available.

Submit Financial Documentation For Commercial Construction Loan

Commercial Construction Financing

Financial transparency is key to demonstrating creditworthiness. Lenders typically request:

• Three years of business tax returns
• Personal financial statements from guarantors
• Balance sheets
• Profit and loss statements
• Bank statements
• Existing debt schedules
• Completed loan application forms

Consequently, providing complete and accurate records upfront can speed up underwriting and strengthen your case for approval.

Application Review

From the moment your application is submitted to final approval, the process can take around 30 days on average. During this time, lenders may request clarifications or additional documents to verify financial stability or project feasibility. Prompt responses can help avoid delays.

Commercial Construction Loan Approval

Once approved, you can access the funds you need to start work. A fast approval process helps you break ground sooner and move toward finishing your project.

At this stage, you review and agree on the terms, interest rates, and repayment conditions. Knowing these details will help you plan your construction budget and long-term financing with confidence.

Establish a Draw Schedule

The draw schedule is the agreed-upon timetable for fund disbursement, tied to project milestones. Using your submitted construction budget, the lender will create or adapt a schedule to outline when and how funds will be released.

This schedule allows the project team to pay subcontractors, suppliers, and other vendors promptly once they complete and verify specific work, such as framing, wiring, or interior finishes.

Commercial Construction Loan: Fund Disbursement

Loan officers or third-party inspectors release funds in phases according to the draw schedule. Before each release, they inspect the work for that phase and confirm its completion.

This system keeps the project on track, ensures the borrower uses funds for their intended purposes, and supports timely payments to contractors.

Ready to turn your blueprint into reality? Call FinanceBoston, Inc. today to secure your commercial construction loan. Get the funding you need to keep building without delays. Talk to a lending expert and start your project with confidence.

FAQs

How is a commercial construction loan different from a regular business loan?

A commercial construction loan provides funds in stages as you reach construction milestones. It charges interest only on the money disbursed and usually converts to a long-term mortgage when the project is complete.

How long does it take to get approved for a commercial construction loan?

The process usually takes about 30 days from application to approval, but providing complete documentation can shorten this timeline.

Do I need collateral for a commercial construction loan?

Yes, most lenders require the property being built or renovated to serve as collateral, along with possible additional guarantees depending on the project size and scope.

FinanceBoston, Inc.
33 Broad Street
Boston, MA 02109
617-861-2041
https://financeboston.com/