Construction Loans
Build your vision.
Plan your funding.
Explore financing for the materials, labor, and milestones that bring your next construction project to life.
A financing plan for the way construction happens.
Construction loans typically provide short-term funding for eligible project costs, such as materials, labor, permits, and development expenses. Programs may support commercial construction or eligible residential development, depending on the lender and intended use.
Rather than releasing the entire loan at once, lenders commonly disburse funds in stages as approved work progresses. This draw structure connects funding to project milestones and the requirements in your loan agreement.
Midwest Funding Advisors helps you explore financing options and connect with lenders based on your project scope, budget, timeline, and plans for completion.
Discuss Your Construction Project
The pieces that bring your project together.
Discuss your full project budget. Which costs can be financed—and when—depends on the lender and program.
Prepare the ground.
Explore eligible costs for site preparation, grading, utilities, and infrastructure required for the build.
Source what the project needs.
Discuss materials and supplies within the approved construction budget and purchasing schedule.
Support the work.
Explore funding for contractor, subcontractor, and labor costs tied to approved project progress.
Build on the right groundwork.
Discuss eligible permitting, design, engineering, and other professional costs associated with the project.
Bring the broader plan together.
Explore financing for qualifying development expenses based on the property, scope, and lender requirements.
Plan for the unexpected.
Discuss budget reserves and how the lender handles change orders, cost overruns, and project delays.
A staged approach to moving forward.
The financing process follows the project’s budget, progress, and agreed conditions.
Define the project.
Discuss plans, budget, contractor qualifications, timeline, equity, and repayment strategy. The lender reviews the project and borrower before approval.
Fund approved milestones.
Request draws as work progresses. Inspections, invoices, lien waivers, and other conditions may be required before each disbursement.
Plan beyond construction.
Repayment may involve a property sale, separate refinancing, or conversion to permanent financing if the program provides for it and its conditions are met.
Permanent financing or refinancing is not automatic. Confirm the completion requirements, maturity date, and repayment plan before committing.
Bring your plans.
Let’s talk through the next step.
You don’t need every document finalized to begin a conversation. These details help us understand your needs:
- Property location, ownership, and intended use
- Project plans, scope of work, and permit status
- Detailed budget, requested financing, and available equity
- Builder or contractor information and relevant experience
- Construction timeline and expected completion date
- Your plan for repayment, sale, or permanent financing
Tell us whether the project is commercial, investment residential, or intended for personal occupancy so we can discuss relevant program requirements.
Request a Free ConsultationClarity before breaking ground.
Understand how financing connects to your project before moving into the next phase.
Visit All FAQs ↗What can a construction loan cover?
Depending on the program, eligible costs may include site work, materials, labor, permits, design, and other approved development expenses. Ask the lender which costs are eligible and when funds can be released.
Will I receive all the funds at closing?
Typically, construction funding is released through draws as the project progresses. An initial disbursement may be available for approved costs, while later draws usually depend on documentation, inspections, and other conditions.
How are payments handled during construction?
Payment structures vary. Some programs have interest-only payments based on the amount disbursed during construction. Review interest calculations, payment timing, fees, and any interest reserve provisions with the lender.
Can the loan become permanent financing?
Some programs include a construction-to-permanent structure; others require a separate refinance, sale, or other repayment at maturity. Conversion or refinancing depends on program terms and qualification requirements and is not guaranteed.
What happens if the project goes over budget?
Additional costs may require borrower funds or lender-approved changes. Review contingency requirements, change-order procedures, and extension terms before starting. An increase in the loan amount is not automatic.
Can financing support residential construction?
Some lenders may offer programs for eligible residential development or investment projects. Personal-use and owner-occupied construction have different requirements. Share the property’s intended use early so the appropriate financing category can be considered.
Find a path for every stage of your plans.
CRE Loans
Explore financing for commercial property purchases, refinancing, and qualifying improvements.
Explore CRE Loans ↗Hard Money Loans
Learn about short-term property-backed financing for eligible investment and renovation projects.
Explore Hard Money Loans ↗Equipment Loans
Explore financing for machinery, vehicles, and equipment that support your business operations.
Explore Equipment Loans ↗Financing is subject to lender approval. Project eligibility, loan amounts, equity requirements, draw conditions, rates, fees, repayment terms, and funding timelines vary by lender, program, and applicant qualifications.
Photography credits
Supporting photos via Unsplash by Fons Heijnsbroek and Ümit Yıldırım .
Let’s build a financing plan around your project.
Connect with Jeshua Morgan to discuss your construction goals, budget, and timeline.