Construction financing
Commercial Construction Financing
Construction financing is funded around a project rather than only an existing stabilized property, so budget, equity, approvals, schedule, draws and the completion/exit plan become central to underwriting.
The financing package should clearly connect project cost, borrower equity, requested debt, approvals, construction plan, contingency and the strategy for sale, lease-up or term financing after completion.
General mortgage informationFinancing availability, terms and lender fit are transaction-specific.
Underwriting context
What can shape the financing structure?
Next step
Discuss the property and financing objective.
Build a draw and contingency schedule
Match contractor payments to anticipated lender advances, inspections and reporting. Identify when borrower equity must be used and who pays overruns. Keep cost-to-complete current as invoices and changes arrive. Before starting work, clarify the completion standard, any holdbacks and the evidence needed for the final advance or takeout financing.
Further reading
Content reviewed September 9, 2026. These resources provide background; individual lender requirements and property circumstances differ. Illustrative calculations are examples, not financing offers.