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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.
How to Secure a Construction to Permanent Loan in New Mexico
For Maria, a local Albuquerque business owner, the journey to building her dream commercial space was filled with excitement and trepidation. She knew the importance of a construction to permanent loan but had no idea where to begin. If you find yourself in Maria’s shoes, this guide is for you.
- How to Secure a Construction to Permanent Loan in New Mexico
- Understanding Construction to Permanent Loans
- Why New Mexico Businesses Benefit
- Credit Score Requirements
- Approval Timeline
- Common Mistakes New Mexico Business Owners Make
- Case Study: A Santa Fe Success Story
- Frequently Asked Questions
- Contact GHC Funding Today
Understanding Construction to Permanent Loans
A construction to permanent loan is designed for those who want to build a property and then convert the financing into a standard mortgage. It’s a popular choice for New Mexico businesses looking to expand or relocate.
These loans offer a streamlined process that combines two loans into one. This means fewer fees and a smoother transition from construction to occupancy. But who exactly needs this? Typically, business owners who want to customize their space or invest in real estate.
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:
- Streamlined process
- Lower overall fees
- Customizable construction options
Why New Mexico Businesses Benefit
New Mexico’s unique market conditions make this loan type particularly advantageous. Cities like Albuquerque and Santa Fe are experiencing growth, with real estate prices reflecting this trend. A construction to permanent loan helps business owners lock in current rates while planning for future expansion.
However, challenges such as fluctuating construction costs and zoning regulations need careful consideration. For example, in Santa Fe, obtaining the right permits can be time-consuming, impacting your project timeline.
Credit Score Requirements
For most lenders, a credit score of 680 or higher is required to qualify for a construction to permanent loan. This ensures you are a reliable borrower and can manage the financial responsibilities that come with building and owning a property.
Approval Timeline
The approval process can take anywhere from 45 to 60 days. This includes the time needed for appraisals, inspections, and underwriting. It’s essential to start early and have all your documentation ready to avoid delays.
Common Mistakes New Mexico Business Owners Make
Even the most prepared business owners can stumble. Here are a few common mistakes:
- Underestimating construction costs
- Neglecting to obtain proper permits
- Ignoring zoning laws
- Failing to account for unexpected delays
Case Study: A Santa Fe Success Story
Consider the case of a Santa Fe restaurant owner who wanted to build a new location. By securing a construction to permanent loan of $500,000, she was able to complete her project on time and within budget, significantly increasing her revenue.
Frequently Asked Questions
- What is the interest rate for these loans? Rates typically range from 4% to 6%, depending on your credit score and market conditions.
- Can I use this loan for renovations? Yes, as long as the renovations significantly alter the property.
- What happens if construction costs exceed the loan amount? You’ll need to cover any additional costs out-of-pocket.
- Do I need a down payment? Yes, usually 20% of the total loan amount.
- Is there a penalty for early repayment? This varies by lender, so check your loan agreement.
- Can I apply if my credit score is below 680? It’s possible, but expect higher interest rates and stricter terms.
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 →Contact GHC Funding Today
Ready to build your dream business space in New Mexico? Contact GHC Funding today to discuss your options and secure the best possible loan terms. Our experts are here to guide you through every step of the process.
Don’t wait – your future in New Mexico starts now.
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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.
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and more—start your funding conversation today.
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