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Rely on AVANA Capital to help preserve your wealth and create growth for your business.
Our conventional and SBA504 commercial construction loans help entrepreneurs build franchised hotels, multi-use offices, or assisted living facilities.
AVANA Capital is a direct conventional Construction, Bridge and SBA 504 lender established to provide financing on lagged hotels and various other owner-occupied commercial real estate assets, as well as renewable energy projects. We pride ourselves on quick turnarounds with flexible financing solutions for projects that range in size from $5 million to $100 million. Our lending solutions promote economic growth by positively impacting communities with job growth and sustainable energy development in the United States.
Keep reading our construction loan basics section below to learn more about construction loan structure and requirements.
Two Years Interest-Only: Construction loans through AVANA Capital are uniquely structured so that the borrower only pays interest for the first two years.
This gives ample time for the project to be completed before monthly principal payments are added.
Low Down Payment: While conventional loans need as much as 30-35% for a construction loan down payment, our requirements have a low down payment.
Our construction loan down payments are between 10% and 20%, depending on the property type under the Construction to SBA 504 Program.
Con include Closing Costs and Fees: Various construction costs, as well as closing and soft fees, such as architectural assessments, title insurance, and surveys, can be rolled into the loan. This structure enables you to keep more cash on hand during the construction process.
Our construction loans are generally short-term loans under the SBA 504 program. Additionally, our commercial construction loan rates start with the loan’s initial two years being interest only.
After the first two years, the principal is converted to a principal and interest payment over a 20-year to 25-year amortization period.
All construction loans are based on a floating interest rate both during construction and after construction, so owners typically refinance and obtain more favorable financing at a lower fixated interest rate amortized over 25 years.
If you are an entrepreneur or business that is expanding or building out your commercial real estate, such as a hotel franchise or office building, construction loans from AVANA Capital can help you achieve your project’s goals.
The following are our construction loan requirements that you must meet for your loan to be considered:
Generally, most construction loans approved with AVANA Capital also provide a secondary form of repayment that is unencumbered.
Additionally, in some cases, we may require additional cash collateral during the stabilization period.
It is also recommended that the borrower has sufficient capital at the ready when they are considering a construction loan.
This capital is recommended to ensure that the borrower can properly cover any necessary up-front costs. An example of these costs can be seen specifically when investing in the hospitality niche.