LAND DEVELOPMENT LOAN

When raw or undeveloped land needs to be made construction-ready a land development loan can be obtained. The raw land may be subdivided and sold as a number of parcels for commercial or residential use. It may also include the installation of sewer, water or power lines to the site.

ACQUISITION AND DEVELOPMENT LOAN

An A&D loan is appropriate if raw land is ready to be developed, or is already developed but needs improvements to its infrastructure or existing buildings. The A&D loan usually covers both the purchase of this land and the cost of any improvements needed before the development can be completed.

MINI-PERM LOAN

Provides short term financing and normally acts as a type of bridge loan prior to taking out a long term fixed rate mortgage.  This is a temporary loan typically used to settle an outstanding construction or commercial property loan on a project that, once completed, would produce income. After three to five years of generating income the mini perm loan is replaced with long-term financing.

TAKEOUT LOAN

A takeout loan can provide permanent financing on projects where a temporary loan, such as a short-term construction loan, currently exists. Many lenders require their developers to secure a takeout loan before a short-term loan can be granted.

INTERIM CONSTRUCTION LOAN

This pays for the labor and materials used to construct a project.  An interim construction loan is usually valid for 18 to 36 months, and is settled once a long-term mortgage is in place.

Lendmark Mortgage Brokerage arranges  construction and permanent loans.  Contact us to request a loan package.