Industry financing

Real Estate Development Loans

Financing solutions for real estate developers and development projects. Real estate development loans help developers finance land acquisition, construction, and development costs. Common applications include land purchase, construction, permits, infrastructure, and working capital. Available loan types include SBA loans (6–13% APR, up to $5M), construction loans, bridge loans, and term loans ranging from $100k–$2M+. Approval timelines vary: 1–4 weeks for SBA and 24–72 hours for alternative lenders. Basic requirements include 2+ years in business (SBA), 650+ credit score, strong financials, and detailed project plans.

Common Financing Needs

  • Land & Acquisition: Land purchase, property acquisition, site preparation
  • Construction & Development: Construction costs, materials and labor, infrastructure, permits and approvals
  • Bridge Financing: Short-term financing, project completion, refinancing
  • Working Capital: Project expenses, operating costs, cash flow management

Best Loan Types for Real Estate Development

SBA Loans — Best for real estate purchase and large projects. Rates: 6–13% APR (lowest), Terms: 5–25 years, Amounts: Up to $5M. Requires 2+ years in business.

DSCR Loans — Best for investment property development. Based on property income. Rates: 7–12% APR, Terms: 5–30 years, Amounts: $100k–$5M+.

Bridge Loans — Best for short-term development financing. Rates: 8–15% APR, Terms: 6–24 months, Amounts: $100k–$5M+. Fast approval available.

Term Loans — Best for construction costs. Rates: 8–25% APR, Terms: 1–5 years, Amounts: $100k–$2M+. Fixed monthly payments.

Industry-Specific Challenges

High Capital Requirements: Real estate development requires significant capital. SBA loans provide optimal rates and terms for substantial investments, though multiple financing sources may be necessary.

Project Timeline: Development projects span months or years. Bridge loans offer temporary funding, then convert to permanent financing upon project completion.

Risk Management: Lenders evaluate project feasibility, market conditions, and developer track record. Strong project documentation and relevant experience enhance approval likelihood.

Qualification Requirements

  • Time in Business: 2+ years (SBA), 6+ months (alternative lenders)
  • Credit Score: 650+ (SBA), 600+ (alternative)
  • Project Plans: Detailed project plans and feasibility studies required
  • Experience: Development experience improves approval odds

Frequently asked questions

Can I finance land purchase?
Yes, SBA loans are optimal for land purchases, offering the lowest rates (6–13% APR) and longest terms (5–25 years). Requires 2+ years in business and strong financial documentation. Land serves as collateral.
What's the difference between construction and development loans?
Construction loans fund building expenses during the construction phase. Development loans finance the entire project including land, permits, and construction. Both may convert to permanent financing upon completion.
Can I use a bridge loan for development?
Yes, bridge loans provide temporary financing during development phases to complete projects, then refinance with permanent loans afterward. Terms typically 6–24 months.

Ready to get funded?

Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

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