Real estate investors and developers often seek construction loans to start and complete their projects. However, securing financing, managing construction costs, and mitigating risks are challenges that can often deter even the most seasoned professionals.
At Malve Capital, we understand the complexities of real estate development and support our clients in achieving their visions. With expertise in construction loans for residential, multifamily, mixed-use, and commercial properties, we empower our clients to turn their dreams into reality. When you become our client, you will see why Malve Capital is the lender of choice for successful development projects. Call us today to discuss your project and funding needs.
About Construction Loans at Malve Capital
Construction loans are short-term financial arrangements specifically tailored to fund the construction or renovation of real estate projects. These loans differ from traditional mortgages as they are designed to be paid off once the construction is completed or the property is sold.
Construction loans come in various forms, each catering to specific project needs, such as:
- Acquisition and development loans –Financing to acquire land and cover the initial development costs before construction begins.
- Construction-only loans – Designed to fund the actual construction phase of a project.
- Construction-to-permanent loans – A seamless transition from the construction loan to a permanent mortgage once the project is completed.
Let our construction loan specialists review your project, assess your finances, and tailor a funding solution to your objectives.
How Does a Construction Loan Work?
Construction loans are not disbursed as a lump sum. Instead, funds are released in a series of drawdowns or “progress payments” at predetermined milestones throughout the construction process. Borrowers are only charged interest on the amount drawn, which helps keep borrowing costs manageable during the construction period. The process typically involves the following stages:
- Application – The borrower submits a preliminary proposal, including project plans, budget, timeline, and financial information.
- Review and approval – Malve Capital evaluates the project’s feasibility, the borrower’s creditworthiness, and the proposed construction budget.
- Loan structuring – We collaborate with the borrower to determine the loan amount, interest rate, and repayment terms that align with the project’s requirements.
- Disbursement – Funds are released in stages based on construction milestones or percentage of completion.
- Construction – The borrower manages the construction, making progress payments to contractors and suppliers.
- Conversion or repayment – Once construction is completed, the loan is converted into a long-term mortgage, or it is repaid in full from the proceeds of selling the property.
You can trust our team to guide you through the process and help you turn your vision into a reality.
Types of Properties We Fund
At Malve Capital, we provide funding for a diverse range of real estate development projects:
- Residential – single-family homes, townhouses, and condominiums
- Multifamily – apartment buildings and residential complexes
- Mixed-use – properties that combine residential and commercial spaces
- Commercial – Office buildings, retail centers, industrial facilities, and more
No matter the type of property, we will help you meet your development timelines with speedy funding and achieve your objectives with exceptional service.
Risks of Construction Loans
While construction loans present lucrative opportunities for developers, they also carry inherent risks. Understanding and managing these risks is crucial to the success of any project. Some common risks include:
- Cost overruns – Unforeseen construction expenses can strain the budget and delay completion.
- Delays and permitting issues – Regulatory hurdles and construction delays can impact timelines and increase costs.
- Market fluctuations – Changes in the real estate market can affect property values and demand for completed projects.
- Project abandonment – If a project fails to progress, the property may remain incomplete, leading to potential financial losses.
Our construction loan specialists will work to help you mitigate risks and access the funding you need to complete the project.
Why Malve Capital?
Choosing the right lender can make all the difference in a successful real estate development venture. With years of experience in real estate development lending, the team at Malve Capital has the knowledge to navigate complex projects effectively. We understand that each project is unique and offer personalized loan structures aligned with specific needs and requirements.
Our efficient application and approval process ensures quick and timely funding to keep projects on track. We prioritize open and clear communication with our clients throughout the lending process. We know that our success is ultimately tied to the success of your project, and we are dedicated to helping you thrive.
Talk To An Experienced Construction Loan Officer Today
With Malve Capital as your lending partner, you have a dedicated team of experts supporting your vision. Whether you are developing residential, multifamily, mixed-use, or commercial property, let us help you turn your real estate dreams into tangible and profitable realities. Contact us today to get started.