Contractors Get A Construction Loan Today!
The construction industry has had a surge in business, and forecasts predict it to continue for the immediate future. That has prompted small and large contractors across Colorado to seek out a construction loan to fund various projects.
The bad news for contractors is that traditional lenders have intentionally opted out of many lucrative deals with all of the complexities in today’s market. In the process, they have made it nearly impossible to obtain construction loans, especially for contractors with less than perfect credit. The worst part is, banks will often put borrowers through unreasonable hoops and complex qualification processes only to turn down the loan after months of deliberation, leaving contractors high and dry.
Who Should You Get a Contractor Construction Loan From?
How will you fund your next project? Who do you call? Do you need a construction loan for your project? If you answered yes, you can skip the rest of this article and call us! Abbey Mortgage and Investments is owned by Robert Kearney and is a private lender in Colorado. We specialize in construction loans for established and aspiring contractors for residential and commercial projects.
Who Needs a General Contractor Loan?
As implied in the name, you must be a builder to get a general contractor loan. Contractor loans are secured by equity from the project property or a collection of properties with equity. The loan provides builders cash in the form of a draw, paid at specific intervals, depending on progress. The money from each draw money pays for permits, materials, and employees to support your contracting business.
General Contractor Loan Use
A general contractor loan can give you the money you need to cover project expenses. While there are always some restrictions, the cash can typically cover many different costs. Here are a few.
- Building materials and supplies
- Insurance policy costs
- Unexpected project complications
- Bidding on new projects for the future
- Getting bonds to cover potential issues
- Buy new equipment (or update old machinery)
Good News for Contractors with Less Than Perfect Credit
Because the Abbey Mortgage funding process is as fast and simple as possible for their clients, there are no unreasonably long wait times, piles of paperwork, or impossible qualification requirements. Let’s discuss your deal, there is no need to settle for no, and if you choose Abbey Mortgage, you are getting a lender that wants to say yes!
- Minimal paperwork and no red tape.
- Fast Loan decisions and underwriting.
- Expert Business advice from Robert Kearney, owner of Abbey Mortgage, helps you through the process from beginning to end!
Abbey Mortgage is proud of our approval record, and we have accepted borrowers with clean credit scores to those that a traditional lender would consider poor. We have even loaned money for projects where the contractor had an open tax lien. We have a strong desire to help ambitious, promising small businesses to succeed and thrive. We have helped many contractors get their start, and they often come back, over and over to get new projects started.
Are Abbey Mortgages Construction Loans A Good Deal?
This really depends on your definition of a good deal. We always like to say that nothing from nothing is nothing. If you can’t get a bank loan, then we are a great deal versus giving up. Even if you can get approved for a bank loan, bank lending procedures can delay your project waiting to close, possibly adding tens of thousands of dollars to your project costs. When you can’t wait, we can offer you a short term loan to bridge the gap until your preferred financing is in place.
What Are Your Construction Loan Terms?
Our Colorado Construction Loans are typically 10-month term and can be extended out to 14 months (with a .4% extension fee for each month the loan is extended). We loan up to 80%LTC/70%LTV and offer interest-only payments, based on an interest rate of 10.45%.
We can provide a pre-approval as soon as one day, and we often close our deals in two weeks. Federal lending regulations do not restrict us as we are a private lender. Grow your construction business with Abbey Mortgage!
There is No Money In A No! But There Are Some Loans We Won’t Do
We are not a bank and our loans are not intended for anyone looking to reside in the home being built. We only loan money to investors, builders, and contractors for commercial and residential projects.