Construction Loans Hotel-Motel, Goals, and Capital

Are you prepared to start constructing your hotel? Trust our construction loans to get you the money you need. Construct with assurance of our competitive prices and flexible terms!

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What Are Construction Loans

Construction loans are short-term financing options that help cover the expenses of building a structure, renovating a property, or making significant improvements. These loans differ from traditional mortgages in a few key ways.

Types of Construction Loans

  • A single-close construction loan combines construction financing with a permanent mortgage into one loan with one closing process.
  • A two-close construction loan features separate closings for construction and permanent financing. Funds are released as work progresses.
  • Construction to permanent loan starts as a construction loan and becomes a permanent mortgage after construction.

Benefits of Construction Loans

  • A reduction in the initial costs will result from phased funding, which will only pay for the construction once it has been finished.
  • When the hotels are not generating revenue, the burden of financial obligations might be reduced by making payments that constitute interest.
  • We are providing funding for various charges, such as the acquisition of land, permits, materials, labor, and other fees.

Documents Needed for Construction Loans (The exact documents may vary by lender

  • Business financial statements (past 2-3 years)
  • Business plan for the project
  • Construction plans and budget
  • Contractor bids and qualifications
  • Property appraisals

Construction Loan Process

  1. Pre-qualification: Get an estimate of how much you can borrow.
  2. Application and Documentation: Submit your application and required documents.
  3. Underwriting: The lender evaluates your financial situation and project details.
  4. Approval: If approved, you will receive a loan commitment letter.
  5. Construction Draw Schedule: Establish a plan for releasing funds based on construction milestones.
  6. Inspections: The lender sends inspectors to verify construction progress before releasing funds.
  7. Loan Conversion (Conv Loan): For Conv loans, the construction loan converts to a permanent mortgage upon completion.

Why Choose Us for Your Construction Financing Needs?

At Hotel Loans, we understand the unique challenges faced by hotel businesses in securing financing. Our team of experts will work with you every step of the way to customize an SBA loan solution that meets your specific needs. From flexible repayment terms to competitive rates and increased chances of approval, we are the premier destination for tailored financing solutions. Contact us today to get started!
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