What are the benefits of a construction financing?
If you want to build, transform or renovate a property to make it suitable for residential rental, you can use a construction financing when financing. Build Finance offers professional real estate investors in this area much more than other market parties.
Real Estate Financing
A construction financing can be interesting if you as a professional real estate investor want to limit the use of your own resources. Partly on the basis of the foundation costs, it is determined what the financing capacity is, whereby part of the financing can also be provided via a building depot. As the construction progresses, invoices from the building depot made can be paid to the contractor on the basis of the agreements made. The building depot can also be used for paying the interest and repayment obligations of the rental mortgage. That can be nice if there are no rental income during the construction or renovation period.
Construction financing at Build Finance
Build Finance is an expert in the field of financing of residential real estate. Within 48 hours you will receive an indicative offer and within 14 days you can already pass your rental mortgage. We also use attractive conditions. For a building depot in existing construction, we use a maximum of 20% of the market value before renovation (Loan to Cost) and a standard duration of 6 months, with the option up to 3 months extension. For new construction or transformation, the upper limit of the building depot depends on the object to be finished. The term here is 12 months, with possibly a maximum of 6 months extension. The interest on the building depot is 1.5% lower than the fixed interest rate of the rental mortgage.
Financing real estate for rental including a construction financing? quote today .
