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Construction & Renovation Highlights
- Financing for ground-up builds and major rehab projects.
- Works for SFR, small multifamily, and select mixed-use/commercial.
- Up to 85–90% of project costs and 70–75% of completed value (case-by-case).
- Interest-only during the build phase for improved cash flow.
Unlocking Opportunities: How to Get a Construction to Permanent Loan in Pennsylvania
When Sarah, a small business owner in Pittsburgh, decided to expand her café into a full-fledged restaurant, she faced a daunting challenge: securing the right financing. Like many Pennsylvania entrepreneurs, Sarah needed a construction to permanent loan to turn her vision into reality. If you’re in a similar situation, this guide is for you.
Understanding Construction to Permanent Loans
A construction to permanent loan is a unique financial product that helps business owners fund construction costs and seamlessly transition to a permanent mortgage. This type of loan is ideal for entrepreneurs who are expanding or building new facilities. In Pennsylvania, where construction projects are on the rise, these loans are becoming increasingly popular.
- Combines construction financing with permanent mortgage
- Single closing process reduces paperwork and stress
Business owners in cities like Philadelphia and Allentown benefit from these loans as they simplify the complex financing process.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
The Pennsylvania Advantage
Pennsylvania’s diverse economy presents unique opportunities and challenges. The state’s construction market is booming, with projects ranging from urban developments in Philadelphia to suburban expansions in Harrisburg. However, navigating local zoning laws and permits can be challenging.
Construction to permanent loans provide the flexibility needed to tackle these hurdles, offering tailored solutions for Pennsylvania’s distinct market conditions.
Securing Your Loan: Step-by-Step
Securing a construction to permanent loan involves several key steps:
- Check Your Credit Score: Aim for a score of 680 or higher to qualify for competitive rates.
- Prepare Your Business Plan: Detailed plans and projections are crucial for approval.
- Find the Right Lender: Work with lenders familiar with Pennsylvania’s market.
- Submit Your Application: Gather all necessary documents to expedite the process.
Approval typically takes 4-6 weeks, depending on the lender and complexity of the project.
Avoid Common Mistakes
Many Pennsylvania business owners stumble over these common pitfalls:
- Underestimating project costs
- Ignoring zoning laws and permits
- Failing to prepare a comprehensive business plan
- Choosing the wrong lender
By addressing these issues early, you can streamline the loan process and avoid costly delays.
Real Case Study: Success in Scranton
John, a developer in Scranton, faced challenges when expanding his commercial property. With a construction to permanent loan of $500,000, he successfully navigated local zoning regulations and completed his project on time. This loan not only covered construction costs but also transitioned into a manageable mortgage, securing his investment for the future.
Frequently Asked Questions
- What is the minimum credit score required? Most lenders look for a score of 680 or higher.
- How long does the approval process take? Typically 4-6 weeks.
- Can I include equipment costs in the loan? Yes, if related to the construction project.
- Do I need a down payment? Usually, a down payment of 20% is required.
- What happens if construction is delayed? Communicate with your lender to adjust timelines if necessary.
- Is refinancing an option? Yes, refinancing can be arranged if conditions change.
Get a Free Rate Today
Compare our top-rated commercial and investment property loan programs below.
- No income verification
- 30-year fixed | Interest-only available
- Great for rental properties + STR
- Fast approvals
- Working capital + business acquisition
- Up to $5M
- Low down payment
- Long-term financing
- Owner-occupied CRE
- Low fixed rates | 25-year terms
- Great for business expansion
- Refinance available
- Best for stabilized properties
- Competitive rates
- 12–25 year terms
- Lower fees than private lenders
Compare Loan Types
Find the Right Financing for Your Real Estate or Business Project
| Loan Type | Best For | Rates | Terms | Highlights | Apply |
|---|---|---|---|---|---|
| DSCR Loan | Rental properties (LTR & STR) | 5.99%+ | 30-year fixed, IO options | No income docs, fast approvals, great for investors | Check My Rate |
| Construction Loan | Ground-up, fix & build, major renovations | 8%–12% depending on scope | 12–24 months interest-only | Flexible draws, great for builders & developers | Get a Quote |
| SBA Loan | Business acquisition, working capital, CRE | Prime + spread | 10–25 years | Lowest down payments, long terms, best for business growth | See My Options |
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Read more →Ready to Get Started?
If you’re a Pennsylvania business owner ready to build or expand, a construction to permanent loan may be your best option. Contact GHC Funding today to explore your options and secure the financing you need to succeed.
Get a No Obligation Quote Today.
Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
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