According to the Consumer Financial Protection Bureau, a construction loan is a financing option that provides the necessary funds to build a property. Typically, borrowed funds are released in several installments or “draws” to cover expenses during the construction process. Sometimes, a construction loan may automatically convert into a long-term mortgage loan, also known as a “construction-to-permanent” loan.

Alternatively, a construction loan may be a short-term option, with borrowers required to either pay off the loan or refinance it into a mortgage loan. If you’re considering building a home in South Florida, a construction loan may be your perfect financing option.

At Us Invest Financial, we can help you find a construction loan that suits your specific needs and financial circumstances. Contact us today to learn more about our commercial loan products and how we can help you secure financing for your next construction project.

Looking for investor and developer loans in South Florida? Look no further! Florida is a highly profitable state, with a medium home value of $385,700, up 6.1% from the previous year. With 1,350 miles of beautiful coastline and sunny weather most of the year, it should come as no surprise that Florida’s real estate market is among the top-performing in the country. It is an ideal location for real estate investors and developers. In fact, more than 65% of Floridians own their own single-family homes, thanks to the state’s low price points and high margins.

But it’s not just homeowners who are flocking to Florida. The vacation rental market is booming, too. According to the NAR’s 2021 Vacation Home Counties Report, two Florida counties are among the country’s top ten hottest vacation markets, with Lee County taking the top spot. In Lee County, a staggering 23% of all houses are used as seasonal vacation homes. Fort Myers and Cape Coral, both located in Southwest Florida, are among the most popular destination spots in Lee County.

What Is An FHA Multifamily Loan? A Federal Housing Administration (FHA) multifamily loan allows borrowers and real estate investors to buy a multifamily home, which the FHA and other mortgage investors define as a property with five or more units.

Why invest in a Multifamily Loan? Owning a multifamily property has multiple benefits. As a landlord, you can:

Generate passive income

Build your real estate and asset portfolio

Reduce your living costs by dividing utilities with your tenants

Qualify for more multifamily loan options in the future by gaining experience

Commercial real estate (CRE) is income-producing property used solely for business purposes rather than residential purposes. Examples include retail malls, shopping centers, office buildings, complexes, and hotels. Financing — including the acquisition, development, and construction of these properties — is typically accomplished through commercial real estate loans: mortgages secured by liens on the commercial property.

Commercial real estate loans are usually made to business entities (corporations, developers, limited partnerships, funds, and trusts).

Commercial loans typically range from five years or less to 20 years, with the amortization period often longer than the loan term.

Commercial loan loan-to-value ratios generally fall into the 65% to 80% range.