Construction Loan Interest Rates Today in Arizona Now

GHC Funding
GHC Funding
Website
Published: January 2, 2026
Categories: blog
Reading Time: 3 minutes read
Article Credits

Contributing Author & Editorial Review

This article was crafted and reviewed by experienced professionals to ensure accuracy and practical insight.

GHC Funding

GHC Funding

Contributing Author

Jordan focuses on real estate finance, small business capital, and practical investing strategies for growth-minded entrepreneurs.

Taylor Morgan

Taylor Morgan

Senior Editor

Taylor reviews content for clarity, compliance, and real-world relevance to ensure every article meets professional standards.

Content is provided for educational purposes and does not constitute legal, tax, or financial advice. Please consult your own advisors before making decisions.

Construction Loan

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.
Get a Pre-Approval or Rate Quote
Quick Help
What type of loan are you looking for?
Pick one to see the fastest next step.
Apply Now Call 833-572-4327 Email Us

Understanding Construction Loan Interest Rates in Arizona: A Guide for Business Owners

Meet Sarah, a business owner from Phoenix, Arizona. She dreams of expanding her family-owned construction business to meet the growing demand in the region. However, like many others, she’s unsure about the current construction loan interest rates and how they could impact her plans. If you’re in Sarah’s shoes, read on. This guide is tailored to help Arizona business owners navigate today’s construction loan landscape.

In this article...

What Are Construction Loan Interest Rates?

Construction loan interest rates are the costs borrowers pay to lenders for providing the funds needed to build or renovate properties. These rates can vary based on several factors, including the borrower’s credit score, the loan term, and the overall economic climate. In Arizona, the construction industry is booming, making it crucial to understand these rates.

  • Variable Rates: Often start lower but can increase over time.
  • Fixed Rates: Provide stability with consistent monthly payments.

Why Arizona Businesses Benefit

Arizona cities like Phoenix, Tucson, and Scottsdale are experiencing rapid growth. With this expansion, businesses can capitalize on new opportunities by securing construction loans. These loans allow companies to build new facilities or upgrade existing ones, enhancing their competitive edge.

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:

Top Pick

DSCR Rental Loan

Best for: Scaling rental portfolios
★★★★★ 4.8/5 (120 reviews)
Starting rate~7–9%+
Loan amounts$100K – $5M+
Term30 yr fixed / ARMs
Highlights
  • No tax returns required
  • Qualify using rental income (DSCR-based)
  • Fast closings ~3–4 weeks
Check DSCR Rates

SBA 7(a) Loan

Best for: Owner-occupied commercial real estate
★★★★★ 4.6/5 (89 reviews)
RatePrime + spread
Loan amounts$350K – $5M+
TermUp to 25 years
Highlights
  • Lower down payments vs banks
  • Long amortization improves cash flow
  • Good if your business occupies 51%+
Explore SBA Options

Bridge Loan

Best for: Fast closing + value-add deals
★★★★☆ 4.4/5 (72 reviews)
RateVaries by deal
Loan amounts$250K – $15M+
Term6–24 months
Highlights
  • Close quickly — move on opportunities
  • Flexible underwriting
  • Great for value-add or transitional assets
Talk to a Specialist
Low Rates

SBA 504 Loan

Best for: Large CRE acquisitions & refinancing
★★★★★ 4.7/5 (101 reviews)
RateFixed, low CDC rate
Loan amounts$500K – $12M+
Term10, 20, 25 years
Highlights
  • Low fixed rates through CDC portion
  • Great for construction, expansion, fixed assets
  • Often lower down payment than bank loans
Check 504 Eligibility

🌐 Learn More

For details on GHC Funding's specific products and to start an application, please visit our homepage:

GHC Funding Homepage

Gemini_Generated_Image_fxiwo2fxiwo2fxiw

 

 

Credit Score Requirements

To secure a favorable interest rate, a good credit score is essential. In Arizona, lenders typically look for a minimum credit score of 680. However, higher scores can lead to better terms and lower rates.

How Long Does Approval Take?

The approval process for construction loans in Arizona can vary. On average, it takes 30 to 60 days. Factors such as lender requirements and the complexity of the project can influence this timeline.

Common Mistakes Arizona Business Owners Make

Avoid these pitfalls when applying for a construction loan:

  • Not understanding the terms and conditions thoroughly.
  • Overestimating the project’s potential return on investment.
  • Neglecting to account for potential delays or increased costs.
  • Failing to maintain a strong credit profile.

Case Study: A Real Arizona Success Story

Consider Mike’s construction firm in Tucson. He secured a 0,000 loan at an interest rate of 4.5%, allowing him to expand his operations. By understanding the loan terms and maintaining a solid credit score, Mike successfully increased his annual revenue by 30%.

FAQs: What Arizona Business Owners Want to Know

Here are some common questions about construction loans:

  • What are the typical interest rates for construction loans in Arizona? Rates can range from 4% to 8%, depending on various factors.
  • Can I convert a construction loan into a mortgage? Yes, many loans offer a conversion option.
  • What documentation is needed? You’ll need financial statements, project plans, and credit history.
  • Are there prepayment penalties? It depends on the lender; always check the terms.
  • How is the loan amount determined? It’s based on the project’s estimated cost and your creditworthiness.
  • What happens if the project is delayed? Communicate with your lender to discuss extensions or modifications.

Get a Free Rate Today

Compare our top-rated commercial and investment property loan programs below.

DSCR Loan
⭐ 4.8/5
  • No income verification
  • 30-year fixed | Interest-only available
  • Great for rental properties + STR
  • Fast approvals
Check My Rate
SBA 7(a) Loan
⭐ 4.9/5
  • Working capital + business acquisition
  • Up to $5M
  • Low down payment
  • Long-term financing
Check My Rate
SBA 504 Loan
⭐ 4.9/5
  • Owner-occupied CRE
  • Low fixed rates | 25-year terms
  • Great for business expansion
  • Refinance available
Check My Rate
Bank / CRE Loan
⭐ 4.7/5
  • Best for stabilized properties
  • Competitive rates
  • 12–25 year terms
  • Lower fees than private lenders
Check My Rate

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

Take the Next Step with GHC Funding

At GHC Funding, we’re dedicated to helping Arizona business owners like you secure the best construction loan terms. Our team of experts is ready to guide you through the process, ensuring you make informed decisions. Contact us today to explore your options and take your business to the next level.

Get a No Obligation Quote Today.


GHC Funding CTA

Helpful Small Business Resources

Use these trusted resources to grow and manage your small business—then connect with GHC Funding to explore financing options tailored to your needs.

Get Funding

GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans, and more—start your funding conversation today.

 

 

 

 

 

 

 

 

author avatar
GHC Funding DSCR, SBA & Bridge Loans
Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com
See Full Bio
DSCR LOAN SBA LOAN
social network icon social network icon social network icon