Florida Construction Loans - Financing from the Ground Up

The process of applying for a construction loan from Seacoast Bank is simple. Just follow the steps below:

1. Application and Assessment: You begin by submitting your project plans and financial details. We will review your application and consider your creditworthiness.
2. Loan Approval and Terms: If approved, we will structure the loan based on your project timeline. You may have adjustable interest rates and make interest-only payments during construction.
3. Funding Disbursement: Funds are released in stages as your project progresses. Seacoast will verify expenses and milestones before each disbursement.
4. Transition to Permanent Financing: Once construction is complete, you transition to permanent financing. This could involve refinancing or converting the loan into a mortgage.

Throughout the process, Seacoast provides guidance, support and financial expertise to help make your construction project a success.

When you apply for a construction loan, you may be asked to meet several requirements. These include:

• Project Plans: Borrowers should be prepared to provide project plans, including engineering designs and a construction timeline.
• Cost Estimates and Budget: A thorough cost estimate for the project is required, detailing materials, labor, permits and other expenses. Borrowers must show a budget that aligns with the loan amount requested.
• Financial Documentation: Be prepared to provide financial documents, such as tax returns, income statements and asset verification, to prove your ability to repay the loan. Credit history and credit scores are also considered.
• Down Payment and Equity: A construction loan typically requires a down payment or equity contribution, which can range from 10% to 20% of the project's total cost.
• Builder and Contractor Credentials: Borrowers must hire licensed and qualified builders or contractors for the construction project. Lenders may require proof of the builder's insurance, licenses and certifications.
• Loan Application: In order to secure a construction loan, you must complete a loan application, providing detailed information about the project, your finances and the intended use of funds.

The term length of a construction loan is the duration of time you are able to fund your construction project.

Seacoast construction loan term lengths are available in terms ranging from six to 24 months. Loans with shorter term lengths (6-12 months) are ideal for smaller projects or renovations with a relatively quick turnaround, whereas extended term lengths (12-24 months) are suitable for larger projects that may require more time for planning, permitting and construction.

It's essential to work closely with your construction loan lender to determine the most appropriate term length and ensure that the loan's disbursement schedule aligns with the project's milestones and funding needs.