Commercial Financing by Lightning Commercial Funding, Inc.
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Commercial Funding
Planning and Processing, The Keys To Land Loans

Construction Loans, Commercial Construction Loans & Land Development Financing for Owner Builders and Developers of Master Plan Communities


Construction loans are designed to pay for the land development construction phase in stages. By providing collateral, usually by pledging the land (assuming the land is free and clear, which means no debt), the lender will disburse funds according to the schedule of production for the project.

Proper Timing The Secret To Construction Loans

Why timing? All construction loans for development either for the infrastructure or the ultimate vertical structures are time based loan, which means that they will only remain in place until something happens to pay off the loan.

The average term for a development loan for a typical small subdivision, less than a hundred homes is around a three year program. With a project of this size there will be partial releases of the building loan as the individual units are sold off to the new property owners.

For a project of less than fifty units the term would be close to two years, also applying partial releases as the project is sold out.

For an industrial warehouse project a building loan may not be in place for more than one year, before a new investor places a term or permanent debt against the property.

What should become very clear is that the complexity of the project generally dictates the term of the secured debt.


The plan by either the investor or the lender to pay off the building loan.

A loan for construction can never be a permanent loan. It can only be a temporary loan until it is paid off by a permanent loan of the eventual buyer of the property.

However before construction loans are secured an acquisition loan to acquire the property must be secured.

For a No-obligation Professional Financial Loan Analysis of any Commercial Investment you may be considering fill in the form please.


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