Construction Loans
Access Construction Loans
Construction financing is a short-term mortgage used to finance a real estate project. Construction mortgages are used by homebuyers, builders and developers planning to build real estate. These mortgages can be used for the construction of:
- Single-Family Homes
- Multi-Family Homes
- Residential Or Commercial High Rises
- Office Buildings
- Industrial Buildings
- Warehouses
- Other Commercial Or Residential Properties
Application Process For Construction Financing
Construction financing is a short-term mortgage to finance real estate projects. This gives you the ability to construct your home.
Construction loans allow purchasing equipment and materials, expanding facilities, recruiting and training employees, and repairing damages. However, the majority of lenders classify construction loans as high-risk since the asset (home) required to secure the construction loan isn’t developed.
Borrowers need to provide a down payment to access construction financing in Ontario. The amount of the down payment required differs by the type of loan and lender; however, 20% of the total project cost is standard. In addition, the borrower must have funds of their own to guarantee they can pay back the construction loan. The down payment depends on the project’s cost, land, and plan.
A credit report, including your credit score, is required to guarantee proper down payment. In addition, lenders analyze the debt-to-income ratio, employment status, and other loans or liens on you and your property.
If you collaborate with a builder, they must provide evidence of their excellent reputation, plus detailed project plans and cost estimates. Lenders examine all parties involved in the construction, such as the builder. It is easier to be approved for construction financing in Ontario when working with a reputable local builder with a track record of completed projects.
Getting an excellent appraisal improves your chances of getting an approved construction loan. Of course, you can get an independent appraisal if you want, but your lender will likely insist on conducting their own.
Once the lender is satisfied with your information, you will sign the contract and receive the funds you need.
How is a Construction Mortgage with Fortuo Financial different?
Fortuo Financial believes in each one of our clients. Our detailed pre-qualification process leads to a higher approval rate for ALTERNATIVE sources of financing available for builders and developers. You may have equity in your project, but the banks’ strict criteria hinder you from accessing your equity to capitalize or provide enough funds to complete construction. Fortuo Financial has all the solutions with potentially funded up to 100% of construction costs.
QUICK AND EASY APPROVAL PROCESS
We look beyond the numbers to understand our client’s needs. As a result, we cater to everyone and help borrowers acquire quick and easy financing in as little as 24 hours*.
OBTAIN HIGHER MORTGAGE TO COSTS THAN THE BANKS
Current trends in the market are making it hard for builders and developers to obtain enough funds the conventional way. This is due to new lending rules and endless requests for paperwork. We can finance up to 100% of the project based on additional assets and have access to lenders that lend up to 100% loan to cost ratios.
Flexible And Progressive
Borrowers prefer Fortuo Financial over traditional banks because of our position in the market. In today’s market, getting your mortgage approved from a bank can take weeks or even months.
integrity. professionalism. results
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Get the intelligent, responsible, and reliable financing you need through Fortuo Financial. Our funding experts use a simple, common sense approach to close your deal as efficiently and effectively as possible. Let us add value to your investment decision-making process.