Construction
Construction financing
Construction financing is commercial real estate debt that funds a project in stages as it is built, secured by the land and improvements, with an interest reserve inside the loan and a defined takeout from a permanent loan or sale. Lenders size on cost, value and income together.
Programs we arrange
How to choose a path
Banks are cheapest but conservative on leverage. Debt funds and private lenders go higher on cost at higher pricing. HUD offers construction-to-permanent loans for multifamily and senior housing with higher leverage and long fixed terms, in exchange for more process.
- Bank construction loan, then a permanent loan
- Debt fund or private lender for higher leverage and speed
- HUD 221(d)(4) or 232 new construction for single-close financing
- C-PACE as a piece of the capital stack
Our role in construction projects
Corin arranges construction financing as a broker. The construction lender funds and administers draws. Corin has no role in draw requests, inspections or lien waivers, and never holds or disburses loan funds.
Frequently asked questions
What is an interest reserve?
A portion of the loan set aside to pay interest during construction and lease-up. It is part of the loan, so it counts toward leverage.
Does Corin manage construction draws?
No. The construction lender funds and administers draws. Corin has no role in them.
Related financing
- HUD 221(d)(4)Non-recourse construction-to-permanent debt for new or substantially rehabilitated apartments.
- Bridge-to-HUDShort-term floating debt to stabilize a facility before a HUD 232/223(f) takeout.
- Multifamily financingHUD, agency, bridge and DSCR options for apartment owners.
- Hard money and bridge loansShort-term, asset-based private loans for speed and flexibility.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.