Purpose
What the funding is intended to support, and the outcome being considered.
PROPERTY & DEVELOPMENT / FINANCE SOLUTIONS
Construction finance
Finance associated with property construction projects.
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Finance associated with property construction projects. The right questions depend on the purpose, structure and timing of each request. Monteus can confirm current services and requirements directly.
Structure
The business, property or asset context relevant to the finance discussion.
Timing
Key dates, milestones and information needed to assess the next step.
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Construction Finance
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Construction loans are different from the usual mortgage type of loan. Construction loans are unique because they are made as progress payments during different stages of construction.
Builders, homeowners and developers can secure construction loans so that they are not forced to accept loans that are not right for their situation. Additionally, these loans allow for progress payments to be made.
As a sort of insurance policy, progress payments provide protection for borrowers. If construction work is improperly done or incomplete, the contractor or builder will not receive payment until the work is satisfactory and in accordance with the contract.
Additionally, construction loans come with the added benefit of only charging interest on the amount borrowed during the term of the loan. The borrower won’t be required to pay interest on all loan amounts if not all of the available loan amount is used.