The Rise of Non-Bank Construction Lenders in Today’s Market

The world of construction loans is changing. Traditionally, when investors and developers needed money, they relied on banks, attracted by lower interest rates and established business relationships. But things are shifting. With interest rates going up and more stringent loan conditions, especially in the risky construction sector, getting that bank financing has become significantly more difficult and drawn out. All of this additional red tape to cut through often means waiting longer to get the funds.

As the banking sector grapples with these hurdles, non-bank construction lenders are stepping up. They’re providing a different route, avoiding many of the roadblocks that traditional banks put up. The flexibility of these non-bank lenders really stands out: They typically have less stringent requirements and can speed up the draw process, easing a big worry for developers who are stressed about cash flow and sticking to project schedules.

Dominion Financial: Pioneering Non-Bank Construction Lending

Dominion Financial has established itself as a leader in non-bank construction lending, offering innovative and tailored financing solutions that cater directly to the needs of today’s real estate investors. Our Ground-Up Construction Loan Program provides developers with the capital they need to get their projects off the ground, without the hassle and endless requirements of traditional banks

This program is meticulously designed to cover both horizontal development and vertical construction costs, perfectly aligning with developers ready to turn their vision into a reality. With options for both single property and portfolio loans, Dominion accommodates a range of developer needs and project scales.

Competitive and Flexible Financing Terms

At Dominion Financial, we understand that every project and developer is unique. That’s why our Ground-Up Construction Loan Program offers competitive and flexible financing terms. We offer up to 90% of the cost basis of a permitted lot and are willing to finance 100% of the construction costs. This extensive coverage provides a significant advantage to developers, reducing the need for large out-of-pocket expenses and enhancing the feasibility of ambitious projects. 

Plus, we have flexible draw schedules that let you get funds in as little as three business days, making it easier for developers to manage cash flow during construction. We even offer loans on lots that aren’t build-ready yet, helping developers get the financing they need to get the site construction-ready.

Streamlined Processes and Reduced Requirements

Dominion Financial streamlines construction financing by eliminating common hurdles like external appraisals. Using an in-house valuation team, Dominion can assess and underwrite properties in 24 hours, cutting down the usual time and cost of securing a loan. This method speeds up financing and avoids issues with appraisal transfers if deals fall through.

Dominion also prioritizes transparency and open communication. Our hands-on team works closely with developers to discuss property values and financial details, ensuring everyone is informed and aligned. This approach builds trust and clarity, streamlining the financing process for modern real estate developers.

Swift Funding and Draw Processes

We pride ourselves on our rapid funding capabilities. Our ability to process draws in as little as three days starkly contrasts with the typical banking process, which can extend to several weeks. 

We adopt a practical and efficient approach to draw administration, selectively choosing inspectors based on the specific needs of each draw request. This situation-based strategy allows for simpler inspections like photography for straightforward assessments, while more complex stages may require detailed inspections. This method offers both time and cost savings for developers.

Decision-Making Efficiency

At the core of Dominion Financial’s operational efficiency is our balance sheet lending model, which facilitates swift decision-making without the need for external committee approvals. This in-house approach means that decisions are made quickly and funds are disbursed without the delays typically associated with traditional bank lending.

At Dominion, we skip the hassle of third-party approval and don’t wait around for a loan committee, we can approve and process loans significantly faster than traditional banks. This gives developers a huge advantage, letting them kickstart and move forward with their new construction projects without any pointless delays.

Partnering With Dominion Financial

If you’re looking for a reliable and efficient financing partner for your next construction project, consider Dominion Financial. With rapid draw funding, flexible lending terms, and streamlined decision-making processes, Dominion is equipped to support your project from the ground up. Visit Dominion Financial Services to learn more about our innovative loan programs and start your prequalification process today.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Leave a comment