Construction Lending

ACL Funding, through its family of Lenders, is able to fund a variety of construction projects. Our goal in most construction projects is to secure to permanent financing so that a local financial institution will provide the construction financing. We can provide this permanent commitment for a variety of property types. For most retail or multi-family projects, a borrower can expect to participate with a minimum of 10% equity. Often, when developing a proposal for an owner-occupied retail project, a two-tiered approach is used. We will secure a conventional lender to provide 50% of the cost of the project and partner that with an SBA product to cover 40% of the cost. This leaves the borrower with a 10% equity participation which can be either cash or, in many cases, the land used for the project. Financing subdivision development is a bit different, as properties are removed from the loan product as they are sold to individual home buyers. However, most developers can borrow up to 65% of the finished value of a project at rates just over New York Prime. These are interest-only loans with a term based on proposed build-out.