Construction & Renovation Lending
You can count on the knowledge and expertise of MainStreet Bank to provide the reliable capital you need today to build the businesses of tomorrow.
With decades of experience working with businesses like yours, our team works seamlessly with you from start to finish. MainStreet Bank will help leverage capital and manage project cash flow. We work with General Contractors, Developers and Investors to deliver a level of attention, expertise and action that most lenders can’t. Expect more from your bank. Reach out today to Put Our Bank in Your Office.
Construction financing experts
Building the businesses and infrastructure of tomorrow requires reliable capital today. Whether you are looking to finance new construction or the renovation of a business property, achieving your goal becomes our mission. We offer creative and flexible financing based on your project and timeline. You can expect local, reliable, and responsive support from MainStreet Bank
We’ll help build the foundation you need for your project to reach new heights. MainStreet Bank provides unmatched guidance and expertise.
How do construction and renovation loans work compared to traditional home loans?
Construction and renovation loans are specialized loans used to finance building a new home or renovating an existing one. Unlike a traditional mortgage where you receive funds all at once to purchase a move-in ready home, these loans involve the lender paying out funds in stages as construction progresses. Payments are made to the builder or contractor at intervals after the work is inspected. Once the project is complete, the construction loan typically converts into a permanent mortgage.
What are the benefits of getting a construction loan to build a custom home vs buying an existing one?
Getting a construction loan to build a custom home allows you to design the exact layout, features and finishes you want. You’re not limited by the current housing market inventory. While building takes longer than buying an existing home, you get a brand new home constructed to your specifications without the need for major renovations. Construction loans also offer flexibility, with options like construction-to-permanent financing that automatically converts to a mortgage once building is complete.
I want to buy a fixer-upper and renovate it. What renovation financing options are available?
If you’ve found a home that needs some work, there are several renovation home loan options depending on your situation. An FHA 203(k) rehab loan includes funds for both the home purchase and renovations in one loan. VA renovation loans allow eligible military borrowers to purchase and renovate a home with no down payment. Fannie Mae’s HomeStyle loan is another option. Make sure to find a lender experienced with renovation financing to ensure a smooth process.
Can I use a construction loan or renovation loan to make improvements to a home I already own?
Yes, certain loan programs allow you to tap into your home equity to pay for renovations on your current home. Cash-out refinancing involves taking out a new, larger mortgage to pay off your old one and receive the difference in cash for home improvements and repairs. Home equity loans and HELOCs are other options for accessing funds based on your home’s value. Talk to your loan officer to determine the best way to finance your project.
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