How to Get a Construction to Permanent Loan in Arkansas

GHC Funding
GHC Funding
Website
Published: February 9, 2026
Categories: blog
Reading Time: 4 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

Unlocking Opportunities: How to Get a Construction to Permanent Loan in Arkansas

For Lisa, a business owner in Little Rock, Arkansas, expanding her small construction company seemed like a distant dream. With a growing demand for her services, Lisa needed a larger workspace but wasn’t sure how to finance the construction of a new facility. She discovered the solution in a construction to permanent loan, transforming her aspirations into reality.

In this article...

What is a Construction to Permanent Loan?

A construction to permanent loan is a unique financial product that combines a construction loan with a permanent mortgage. This type of loan is ideal for business owners looking to build or renovate a commercial property. It simplifies the process by eliminating the need for two separate loans, reducing paperwork and closing costs.

For Arkansas businesses, this loan is a powerful tool. The state’s economy is growing, especially in cities like Fayetteville and Bentonville, where construction projects are on the rise. A construction to permanent loan provides a streamlined financing option, enabling businesses to thrive in these bustling markets.

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_g0f5bkg0f5bkg0f5

 

 

Steps to Secure a Construction to Permanent Loan

Getting a construction to permanent loan in Arkansas involves several key steps:

  • Assess Your Credit Score: Lenders typically require a credit score of at least 680. A higher score can improve your chances of approval and better loan terms.
  • Prepare Your Financial Documents: Gather income statements, tax returns, and a detailed business plan. This information demonstrates your business’s financial health.
  • Choose the Right Lender: Work with a lender familiar with the Arkansas market. They can provide valuable insights into local conditions and requirements.
  • Submit Your Application: Ensure all documentation is accurate and complete to avoid delays. Approval usually takes 30 to 60 days.
  • Plan Your Construction: Collaborate with architects and contractors to create a detailed plan and budget, which will be reviewed by the lender.

Common Mistakes to Avoid

Arkansas business owners often make these mistakes when applying for a construction to permanent loan:

  • Underestimating Costs: Failing to account for unexpected expenses can derail your project. Include a contingency fund in your budget.
  • Inadequate Planning: A vague construction plan can lead to rejection. Provide detailed blueprints and timelines.
  • Ignoring Local Regulations: Each city in Arkansas, like Little Rock or Fort Smith, has specific zoning laws and building codes. Ensure compliance to avoid legal issues.
  • Choosing the Wrong Lender: Not all lenders offer construction to permanent loans. Research to find the right fit for your needs.

Case Study: Building Success in Fayetteville

Consider the story of GreenTech Innovations, a renewable energy company in Fayetteville. They needed to build a new facility to meet increasing demand. With a credit score of 720 and detailed financial records, they secured a $1.5 million construction to permanent loan. The project was completed on time and under budget, boosting their production capacity by 40%.

Frequently Asked Questions

Here are answers to common questions about construction to permanent loans:

  • What is the typical interest rate? Rates vary but generally range from 4% to 6%.
  • Can I refinance later? Yes, once the project is complete, you can refinance if better rates become available.
  • Do I need a down payment? Typically, a down payment of 20% is required.
  • What if my credit score is below 680? Consider improving your credit score before applying or explore other financing options.
  • How is the loan disbursed? Funds are usually released in stages, aligned with construction milestones.
  • Are there prepayment penalties? This depends on the lender. Review your loan agreement carefully.

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

Contact GHC Funding Today

Ready to explore your financing options? Contact GHC Funding for expert guidance on securing a construction to permanent loan in Arkansas. Let us help you turn your business dreams into reality.

“`

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