The world of construction loans is changing, and non-bank construction lenders are becoming a key player. Traditionally, investors and developers relied on banks for financing, drawn by lower interest rates and established relationships. But things are shifting. With rising interest rates and stricter loan conditions—especially in the risky construction sector—obtaining bank financing has become significantly harder and more time-consuming. This added red tape often leads to longer wait times to access funds, pushing many toward non-bank construction lenders.
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 leads among non-bank construction lenders, offering innovative, tailored financing solutions for real estate investors. Our Ground-Up Construction Loan Program provides developers with essential capital to launch their projects smoothly.
This program avoids the hassle and extensive requirements of traditional banks. We designed it to cover both horizontal and vertical construction costs, aligning with developers’ visions. 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
Dominion Financial’s balance sheet lending model drives operational efficiency. This model allows us to make decisions quickly, without external committee approvals. Our in-house approach enables us to disburse funds promptly and avoid typical bank delays. We skip the hassle of third-party approvals and bypass waiting on a loan committee. As a result, we approve and process loans faster than traditional banks. This advantage lets developers start construction projects right away, without unnecessary 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.
