JESSE BRUN

As the city of Saint John continues to expand, many home builders and home developers are looking for alternative construction loan companies to finance their projects since traditional banks have strict guidelines compared to construction loan companies. In this article, we will take at how alternative construction loan companies in Saint John, NB can help you finance your next construction project.

Construction Loans companies in Saint John, NB

Alternative construction loan companies are also known as private construction lenders. Not all private lenders specialize in construction lending but some do. Most private lenders will work with reputable mortgage agents that help with the construction loan process. The construction loan is typically broken down into several disbursements, which are made at specific stages of the construction process. There are several construction loan companies (private construction lenders) in Saint John NB. 

Why choose our mortgage office in order to get construction financing from the best private construction lending companies?

If you are tired of dealing with banks and not getting the financing support you need, we work with the best construction lenders in Saint John NB. Our construction lenders in Saint John, NB are competitive and they support many home builders and developers. Our lenders also have advanced methods to quickly fast-track the approval process. As a bonus, our lenders do not have any credit score, income, or presale requirements.

If your project is denied financial support by the bank or if you want to complete more projects faster, we are at your service to help you. Call (888)878-4660 and chat with us for an expert opinion about your project.

We are confident that when you connect with us, we can help to remove all headaches and hassles to get you the money to start your construction or development project as soon as possible. If you have money problems for your profitable projects, we have mortgage solutions for you.

Feel free to visit our construction financing website which has more details about our private construction lender solutions for home builders and developers in Saint John NB. The website is: www.ezconstructioncapital.com

Our mortgage office specializes in providing construction loans in Saint John, NB. We have years of experience working with individuals who have bad credit, and we understand the challenges that you may be facing.

When you choose our mortgage office for your bad credit construction loan, you can expect:

• Experience construction mortgage agent
• Fast construction approvals
• Expert advice& guidance
• Flexible eligibility requirements
• Personalized service

Contact Our Mortgage office Today!

If you are looking for a construction loan company in Saint John, NB, look no further than our mortgage office. We offer a range of construction loan options to suit your needs and budget, and our team of experienced professionals will work with you every step of the way to ensure that your project is a success.

To learn more about our construction loan options or to get started on your loan application, contact us today at (888)878-4660 or fill out the short form on the top left-hand side of our website, The website is: www.ezconstructioncapital.com

Below is a list of words that are associated with getting a construction loan. We are providing you the list along with their definitions to help you in your construction journey:

1. Draw schedule: a timeline of when and how much money will be disbursed during the construction process, usually based on certain milestones being met.
2. Builder's risk insurance: insurance that protects against damage or loss during the construction process.
3. Certificate of occupancy: a document issued by a local government agency that certifies that a newly constructed building meets all local building codes and is safe for occupancy.
4. Construction contract: a legal agreement between a property owner and a contractor that outlines the terms and conditions of a construction project.
5. Disbursement: the process of releasing funds from a construction loan to pay for materials, labor, and other expenses.
6. Contingency fund: a reserve of money set aside to cover unexpected expenses that may arise during the construction process.
7. Construction loan: a short-term loan used to finance the construction of a new home or other real estate project. 
8. Mortgage: a loan secured by real estate, usually used to purchase a home or other property.
9. Equity: the difference between the value of a property and the amount of money owed on any outstanding loans.
10. Closing disclosure: a document that outlines the final terms of a mortgage loan, including the interest rate, closing costs, and other fees.
11. Loan-to-value ratio: a comparison of the amount of money borrowed to the value of the property being purchased.
12. Interest-only loan: a type of loan in which the borrower only pays interest for a set period of time, with the principal due at the end of the loan term.
13. Mortgage broker: a middleman who helps borrowers find and apply for mortgages, typically by working with a network of lenders.
14. Appraisal: an estimate of the value of a property, typically done by a professional appraiser.
15. Title insurance: insurance that protects the lender and/or the homeowner against any title defects or disputes that may arise.
16. Closing costs: the fees associated with finalizing a mortgage or real estate transaction, including things like appraisal fees, title insurance, and attorney fees.
17. Lien: a legal claim against a property, usually filed by a creditor who is owed money by the property owner.
18. Construction lien waiver: a document signed by a contractor or subcontractor that waives their right to file a lien against a property in exchange for payment for their services.
19. Construction-to-permanent loan: a type of mortgage that allows borrowers to finance both the construction and the long-term financing of a new home or other real estate project.
20. Building permit: a document issued by a local government agency that authorizes the construction of a new building or renovation of an existing structure.
21. Zoning laws: regulations that dictate how land can be used in a given area, typically set by local governments.
22. Construction contingency: a reserve of funds set aside in case of unexpected expenses that may arise during the construction process.
23. Inspection: a process in which a professional inspector examines a property to ensure that it meets all relevant safety codes and standards.
24. Architect: a professional who designs buildings and oversees their construction.
25. Punch list: a list of final tasks that need to be completed before a construction project can be considered fully finished.
26. Mechanics lien: a legal claim filed by a contractor or subcontractor against a property owner who has not paid for their services.
27. Change order: a written document that outlines any changes to the original scope of a construction project, typically used to update project plans and budgets.
28. Surety bond: a type of insurance that guarantees that a construction project will be completed according to the terms of a contract.
29. Balloon payment: a large, one-time payment due at the end of a loan term, typically used in conjunction with interest-only loans or other non-traditional mortgage products.
30. Retainage: a portion of a construction payment that is withheld until the project is complete, typically used as a form of security against any potential defects or delays.
31. Title search: a process in which a title company reviews public records to ensure that there are no outstanding liens or other claims against a property
32. Subcontractor: a professional hired by a contractor to perform specific tasks, such as electrical or plumbing work.
33. Loan origination: the process of applying for and obtaining a mortgage loan.
34. Escrow: a financial account held by a third party, typically used to hold funds for property taxes, insurance, and other expenses.

The construction draw process:

A construction draw mortgage is structured to release funds to the borrower in stages, as construction progresses. Here's a brief explanation on how a construction draw mortgage typically works in Canada using 3 draws:

1. First Draw (Weather Tight): The first draw is issued when the construction project reaches the "weather-tight" stage, which means the building has a roof, windows, and exterior doors that can keep out the weather. This draw is intended to cover the costs associated with completing the exterior of the home, such as the foundation, framing, roofing, and exterior finishes.
2. Second Draw (Sheetrock Ready): The second draw is issued when the construction project reaches the "sheetrock ready" stage, which means the interior walls have been framed and are ready for drywall installation. This draw is intended to cover the costs associated with completing the interior of the home, such as insulation, electrical work, plumbing, and drywall.
3. Final Draw (100% Complete): The final draw is issued when the construction project is 100% complete, depending on the lender's policies. This draw is intended to cover the remaining costs associated with the completion of the project, such as landscaping, paving, and final finishes.

In general, the borrower will only pay interest on the funds that have been drawn from the construction draw mortgage, rather than on the entire loan amount. This can help to keep monthly payments lower during the construction period. However, it's important to note that the interest rate on a construction draw mortgage is typically higher than on a standard mortgage loan, due to the increased risk associated with construction projects. The lender may also require periodic inspections of the construction site to verify that the work has been completed before releasing each draw.