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Construction Financing

When you talk about construction financing from a mortgage solutions provider perspective, no one other than Freedom Capital comes to mind.  We are specialized and experienced in providing topnotch quality services to our valued clients. With our added benefit of providing customized and tailored solutions, from flexible open terms to multiple draw options, Freedom Capital has all the solutions with costs funded up to 100%.

Banks these days are looked upon as non-common sense lenders. They have become so much stricter and firm in their loan approval processes. Not only that, conventional banks offer restrictive types of lending offers as well as limited amounts of finances. You might go to a bank in hopes of applying for a construction financing loan of $3,000,000 only to find that the bank will approve $2,000,000.

What sets Freedom Capital apart from the banks is the fact that we provide our borrowers with the finances they need for their various projects simultaneously. We do not limit the amount of finances our borrower needs for their projects going on at the same time.

Not only do we provide the finances, we provide quick and expert solutions to our borrowers regarding their project. We deeply analyze our client’s project and come up with a solution that has flexible draw options. We want to ensure the success of our borrowers.

At Freedom Capital, we offer multiple options to our clients that most conventional banks don’t. Keeping our client’s best interest in mind, we offer them our range of financing option as well as professional advice. Our options are not restricted to the borrower that leads to their project being held back. We place our clients and their needs as our topmost priority.

If you wish to know more about us and how we will be of service to you, contact one of our professional representatives.

What is meant by the term “Construction Financing”?

Construction loans are short-term loans that are utilized for the purpose of financing the construction of a real estate project.  Also called a self-build loan, construction financing is normally chosen by home buyers or builders who are planning on building a personalized and custom-built project.

Types of Construction Loans

If you are looking for a way of financing your construction project, you should be wary of your options. There are a few types of construction mortgages that you should be familiar with. You will find it extremely helpful when you go to your dependable and trustworthy mortgage solution provider for your construction loan.

Be it single-family home construction financing, multi-family townhouse and condo project financing or a multi-million-dollar financing project, Freedom Capital is there to offer you the finances you require as per your need.

1. Construction Only Financing

If we take a look at the old-school method of funding gut remodels, custom and new homes, the only option available was construction only loans. Builders and developers would purchase the land and then look for a mortgage company to finance the building structure as draw financing or numerous reimbursements.

When the maturity period of the short-term loans ends, the borrower is required to sell-off the asset in order to recapitalize or put in an application for another permanent loan. Although this option is still available to this day, with banks slow to give loans, reliable and responsible private mortgage lenders have stepped up and filled the need.

Freedom Capital is a renowned mortgage solution provider that gives you the option to have access to your type of construction loan. You can depend on us for your single-family home construction financing, multi-family townhouse and condo project financing projects. We won’t let you down.

2. Construction-to-Permanent Loans

Construction-perm loans are one-time close loans that turn over as fixed term loans when the construction gets completed. This helps save on closing costs, time and paperwork. The fees you are required to pay is reduced since there is only one closing associated with the construction-perm loan.

At the time of the construction, you are required to pay the interest on your remaining balance. During the construction stage, the interest rate will be variable and fluctuate by means of the prime rate. In case the Federal Reserve increases or reduces the short-term rates of interest at the time your real estate is being constructed, your interest rates will be affected and modified.

The moneylender converts the construction mortgage into a permanent loan when the contractor completes the construction of your property. Like other mortgages, permanent mortgage let you have the liberty to choose either an adjustable-rate mortgage or a fixed-rate mortgage, as well as state the loan’s term.

There are many mortgage solution providers who give the option to lock a topmost mortgage rate at the time when the construction commences. Freedom Capital, your reliable and responsible mortgage service lenders will require you to pay an initial payment of your permanent mortgage.

If you wish to find out more about the types of construction loans and which one is best suited for you, contact one of our qualified representatives at Freedom Capital to learn how we can be of service to you.

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Advantages of choosing construction financing

Now that we have explicitly explained what construction mortgages is about, let’s talk about how it can be beneficial to you and your business.

  1. Short-Term Financing

Since construction loans are short-term, you don’t have to worry about the interest accumulating on it. You are able to easily get your required construction finances from your loyal and reliable mortgage solution provider without any worries. After the construction is completed, you will be required to pay back the loan. This is advantageous for the businessman because they get the breathing space they need to pay back the loan.

  1. Construction To Permanent Loan Offering

The second reason why construction financing is useful to many borrowers is that many mortgage service lenders are offering the construction to permanent loan. With this loan offer, you get the finances you need as well as the time to pay the loan back. At the stage when your project gets completed, the loan converts into a mortgage loan.

Most businessmen who are unable to arrange for the finances to pay back their short-term loan find this option extremely beneficial. Now that the loan converts to a mortgage-kind loan, the interest rate gets locked.

If you are thinking about making an addition to your existing structure, or you are thinking about getting a new structure constructed, you will most likely need to arrange for some finances. Give your trustworthy mortgage solution provider a visit.

If you wish to find out more about the types of construction loans and which one is best suited for you, contact one of our qualified representatives at Freedom Capital to learn how we can be of service to you.

What is meant by the term “Draw Mortgages”

Constructing a property takes a good amount of time, not to mention quite a handsome amount of money. For this purpose, draw financing is a suitable and appropriate way for constructors to give payment to the labor and material used in the construction of your home.

Draw mortgages are organized before the construction starts. This mortgage is filed under the name of the constructor right from the beginning.

Draw mortgages are mostly stated as progress draw mortgages. The reason being that the constructor will “draw” progressively on the mortgage during the course of the construction project.

The funds are provided at intervals to the builder by their trusty mortgage service providers as the property gets built. The time period can fluctuate, but mostly, the funds are provided in the following draws:

  1. Lockup stage
  2. Drywall stage
  3. Finally, at possession

Freedom Capital has access to lenders that have a ‘no limit’ on draw advances. We’ve structured deals where the borrower has access to a draw on a monthly basis.

At the time of each draw, you are required to submit your Progress Inspection Report. It is a report that shows the amount of sufficient progress that has been made. When your mortgage services provider is satisfied with the report, they provide the funds as decided for the next draw.

Progress draw loans are favored by home builders for the reason that it permits them to obtain some parts of the finances at the time of the predetermined property building process. In order to acquire draw mortgages, you will need to head over to your loyal and genuine mortgage solution provider to get verification for your property construction to commence.

The advantages of choosing the option of progress draw financing are plenty. The builder is in a position to control and handle their cash flows effectively. Once the inspectors approve, the funds for the next draw gets approved.

If you wish to know more about draw financing, contact one of our specialists and consultants to help you with your construction financing needs. We will only be happy to help you out.

What is meant by the term “Renovation loan”

Renovation mortgages permit you to fund both, the procurement price of the estate as well as the cost of its renovations in just one loan. Funding the cost of the restorations and repairs into the mortgage means that you no longer have to worry about coming up with the entire cash for the necessary remodel and repair costs for transforming your estate.

If you are unable to afford the funding required for your home renovations, you can always see your reliable and loyal mortgage services provider. If you choose to go to the right mortgage solution lender, they will not let you down.

If you wish to know more about renovation loans, contact one of our professional consultants at Freedom Capital to help you with your financing needs. We will only be happy to help you out.

What is meant by the term “Acquisition and Development loan”?

An acquisition and development mortgage is an advancement of finances protected by the loan to fund the installing or construction of the necessary improvements in the real estate for the raw land to be converted into a construction-ready site.

Acquisition and development financing is generally utilized for purchasing property and then the necessary subdivisions and improvements are spent on it. Normally, a percentage of the mortgage is spent towards acquiring the land and the rest of it is kept for its improvements. These enhancements and developments can be in the form of installing sewer lines, constructing roads, grading or subdividing of lots. An adequate part of the development loan is also kept for contingency reserve.

The development loan may be accepted in circumstances where the borrower uses a collateral, for instance, a mortgage on their real estate as a way of acquiring funds.

Talk To Your Skilled Acquisition and Development Financing Mortgage Solution Provider

If you decide to venture into a development project, don’t leave it to a chance. If you are having trouble arranging for its finances, talk to a professional and experienced mortgage services lender. They will do their best to assist you in finding the right kind of loan for your development plan. You are putting your valuable time and precious money towards planning and carrying out your development project. You deserve to get the best services and advice from your mortgage solution provider. Make sure you choose the right one for yourself.

If you wish to know more about development financing, contact one of our professional consultants at Freedom Capital to help you with your financing needs. We will only be happy to help you out.

Why choose a mortgage solution provider for your construction financing needs?

There are various reasons why borrowers tend to turn to a mortgage services lender than to a bank. In this day and age, more and more people have come to realize that the right way to go for a mortgage is through a mortgage solution provider.

Here are a few reasons why you should consider a mortgage services lender.

  1. Mortgage solution lenders put their focus on finding the best option for you

If you choose to go to a mortgage lender to end your construction financing troubles, you will be amazed at the vast range of options you are presented with. They are dedicated to finding out the best and personalized choice that would suit you perfectly.

  1. Mortgage solution lenders help find out the right solution in a challenging situation

In case you find yourself in a difficult or unusual situation that you are not able to handle by yourself, don’t hesitate to contact your mortgage lender. They will go through deep ends to find out the right and correct solution that will immensely help you. They will go to great lengths for you and give you all the time you need to come up with the right solution for you.

  1. Mortgage solution lenders give their expert advice regarding the right construction loan for you

With most banks, their loan choices will be restricted to their offerings. The mortgage solution lender will look into and evaluate your monetary qualifications. They will take the time and discuss your goals and then give you their recommendations keeping your best interests in mind.

If you wish to know more about construction mortgages, contact one of our professional consultants at Freedom Capital. We will only be happy to help you out

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Calgary, AB T2P 3E5
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330-175 Commerce Valley Drive West
Markham, ON L3T 7P6
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