ConstructionLoans
Finding the perfect financing option for a construction project seems to take as much effort as the project itself. With a construction loan, you can make sure that a delay or change to the plan doesn't put you over budget.
Stage-based funding that matches your project milestones — so you only borrow what you need, when you need it.
Construction Loans Explained
As opposed to a traditional loan, construction loans are designed specifically for funding construction projects. They can cover all aspects — from groundbreaking through completion. Instead of receiving the full amount at once, funds are released in stages that correspond to the project's progress.
The builder only receives funding based on the section of the project currently underway. This greatly reduces risk: if delays occur, you're only responsible for the amount drawn so far — not the full commitment. The loan size scales with the scope of the project.
To obtain a construction loan, you'll need a licensed contractor, approved building plans, and a clear exit strategy. Institutions offering construction loans typically have a deep understanding of the construction process — making draws faster and approvals smoother.
What Can Be Funded?
From raw land to commercial towers — construction loans are sized and structured to match the scope of your specific project.
Advantages of Construction Loans
Structured specifically for builders and developers — construction loans protect your budget, reduce risk, and keep your project moving forward.
Purpose-Built for Construction
Unlike general business loans, construction loans are specifically designed around the realities of building — stage-based draws, milestone approvals, and lenders who understand the construction process.
No Principal During Construction
Select construction loans allow interest-only payments during the build phase — so you're not repaying principal on money you haven't fully deployed yet. This keeps cash available when you need it most.
Stage-Based Draws Reduce Risk
Because funding is released in stages tied to project milestones, you only borrow what you need at each phase. If delays occur, you're only responsible for the amount drawn — not the full loan.
New & Ongoing Projects
Whether you're breaking ground on a new development or need to refinance an ongoing build, construction loans can be structured for both — giving you flexibility at any project stage.
Converts to Long-Term Financing
Many construction loans include a built-in path to convert into a permanent mortgage or long-term business loan upon project completion — eliminating the need to refinance separately.
Lenders Who Understand Construction
We work with institutions that specialize in construction financing — meaning fewer surprises, faster draws, and advisors who know the difference between a foundation inspection and a framing draw.
Smart Ways to Structure Your Construction Loan
A well-structured construction loan protects your budget and keeps your project on track — even when the unexpected happens.
Land Development
Construction loans can cover permit costs, subdivisions, utility infrastructure, grading, and more. No matter how complex your land development project, a construction loan can be sized to cover every phase from raw land to shovel-ready.
Building & Construction
Once construction begins, your funding plan is broken into milestones. You only draw the next tranche when you reach a specific stage — keeping interest costs low and ensuring funds are used purposefully throughout the build.
Long-Term Options
Many construction loans can transition into long-term financing once the project is complete. This gives you the runway to stabilize operations or lease up the property before the full repayment cycle begins.
Frequently Asked Questions
What If the Project Gets Delayed?
Construction loans are designed with project realities in mind. Because funding is released in stages tied to milestones, a delay simply means you haven't drawn the next tranche yet — so you're only responsible for interest on the amount already taken out. Your HTP advisor will help you structure the loan with appropriate contingency buffers built into the timeline.
What Is the Interest Rate?
Interest rates depend on your credit score and the institution you borrow from. Construction loans typically carry variable rates tied to benchmarks like the prime rate, though fixed-rate options exist. Reach out to one of our loan brokers to get the best possible rate for your specific project and profile.
What Do I Need to Apply?
To obtain a construction loan, you'll need a licensed contractor, a set of approved building plans, and a clear exit strategy (how the loan will be repaid — typically through a sale or permanent financing). Having a detailed project budget also strengthens your application and helps us match you with the right lender.
Can a Construction Loan Convert to a Permanent Mortgage?
Yes — many construction loans are structured as 'construction-to-permanent' loans that automatically roll into a long-term mortgage once the certificate of occupancy is issued. This eliminates a second round of closing costs and lets you lock in permanent financing from day one.
Do I Need to Make Payments During Construction?
On many construction loans, you only pay interest on the amount you've drawn — not the full loan commitment. Select products allow interest-only payments during the entire construction phase, with principal repayment beginning only after the project is complete or the loan converts to permanent financing.
Ready to Fund YourNext Project?
At HTP Solutions, we tailor construction loan options to the unique scope and timeline of your project — with transparency, integrity, and dedicated support from first draw to final completion.
Apply in minutes. No hard credit pull. Zero obligation to accept any offer.