Commercial Real Estate
New Construction Loans
Ground-up development demands capital that moves as fast as your project timeline. Gumption submits your construction deal to 700+ competing lenders simultaneously — so you receive multiple term sheets in days, not weeks. Free to submit and receive term sheets.
About New Construction Loans
A commercial real estate new construction loan provides the capital to build income-producing property from the ground up — or to complete a substantial renovation that effectively creates a new asset. Unlike permanent mortgages underwritten on stabilized NOI, construction financing is sized against project budget, loan-to-cost (LTC), sponsor experience, and the lender's confidence in the exit: either a construction-to-permanent conversion or a takeout refinance once the project leases and stabilizes.
Construction loans are typically structured with interest-only payments during the build period, funded through milestone draws as the general contractor completes each phase. Matching your project to lenders with active construction appetite — and the right perm takeout path — is one of the highest-leverage decisions in the development process.
Common Project Types
- Ground-up multifamily: garden, mid-rise, and build-to-rent communities
- Retail and mixed-use: pad sites, shopping centers, and main-street developments
- Industrial and flex: warehouse, distribution, and last-mile facilities
- Hospitality: select-service hotels and extended-stay properties
- Self-storage and specialty commercial: ground-up and expansion projects
- Owner-occupied commercial: SBA-eligible build-to-suit and expansion projects
Construction Loan Types Gumption Can Source
- Construction-to-permanent: single-close structures that convert from IO construction draws to long-term permanent financing
- Standalone construction + takeout: separate construction loan with a committed or identified permanent refinance at stabilization
- Bridge construction: floating-rate construction financing for value-add and transitional projects
- Agency construction: Fannie Mae, Freddie Mac, and HUD programs for qualifying multifamily developments
- SBA 504 construction: below-market fixed rates for owner-occupied commercial build-outs
- Mini-perm: medium-term financing bridging construction completion to long-term permanent placement
Why Use Gumption for Your Construction Project
Construction lenders are highly specialized — and the bank that financed your last deal may not be the best fit for your next ground-up project. Gumption ensures you see the full market:
- 700+ lenders across regional banks, national lenders, debt funds, life companies, agency programs, and SBA platforms
- 4+ competing term sheets in 3 business days — compare LTC, rate, IO period, extension options, recourse, and fees side by side
- AI-powered matching that routes your deal to lenders actively competing for your asset class, geography, and project size
- Dedicated capital markets advisors who understand draw schedules, completion guarantees, and takeout mechanics
- Free to submit and receive term sheets — Gumption charges borrowers an origination fee only when a loan closes with a recommended lender
HOW IT WORKS
How Gumption Gets You the Best Construction Terms
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