Funding Options for Multi-Family Construction with 303 Construction
Securing financing is one of the biggest hurdles in multi-family development. Whether you’re building a duplex, townhomes, or a large apartment complex, 303 Construction can guide you through financing options to bring your project to life.
Top Financing Options for Multi-Family Development
1. Conventional Bank Loans
- Best for: Established investors with strong credit.
- Loan terms: Typically 15-30 years with competitive interest rates.
- Pros: Lower interest rates than private loans.
- Cons: Requires large down payments (20-30%).
2. Commercial Construction Loans
- Best for: Large-scale developments.
- Loan terms: Short-term (12-36 months), covering land acquisition & construction costs.
- Pros: Flexible draw schedules to match project phases.
- Cons: Interest rates are higher than conventional loans.
3. FHA Multi-Family Loans (HUD 221(d)(4))
- Best for: Developers seeking long-term, low-interest financing.
- Pros: Up to 85% loan-to-cost (LTC) financing with 40-year fixed rates.
- Cons: Lengthy approval process with strict guidelines.
4. Private Equity & Joint Ventures
- Best for: Investors needing additional capital.
- Pros: Less restrictive than bank loans.
- Cons: Requires sharing equity and profits with partners.
5. Tax Incentives & Grants
- Denver offers incentives for affordable housing and green building.
- LIHTC (Low-Income Housing Tax Credits) are available for qualifying projects.
How 303 Construction Supports Multi-Family Developers
- Assistance with budgeting & financing strategies.
- Project feasibility studies to help secure funding.
- Connections with lenders & real estate investment partners.
Looking to finance a multi-family development in Denver? Contact 303 Construction today to explore your options!