Commercial Lending, LLC is pleased to offer land acquisition, construction and closing costs financing for small single-family residential construction projects. We offer loans for stick-built or modular home construction. We work with you to streamline the construction loan process so that you can begin construction on your schedule.

Our basic loan criteria for construction loans are:


Land and Construction Overview

  • LTV up to 50% of land value
  • Financing for up to 100% of on-site construction costs
  • LTV up to 60-65% of Finished Value
  • Six month or twelve month balloon
  • No monthly payment on six month loans – interest accrues (partial payment required in MD and DC)
  • Monthly payment required for twelve month loans
  • 12% annualized simple interest


  • 6 points for funding fees
  • $500 – $1,000 commitment fee (due upon acceptance of our loan offer)
  • $375-$500 appraisal fee (withheld from loan proceeds at purchase)
  • $475 document preparation fee (withheld from loan proceeds at purchase)
  • $250 draw inspection fee (for each draw, withheld from draw)

Other Features:

  • Closing usually within 10 to 15 days of approval
  • Construction escrow required for funds (disbursed upon completion) (draw request form)
  • Builders risk hazard insurance required (mortgagee clause/insurance)
  • Appraisal required through our approved appraisers
  • No survey or termite report required
  • No pre-payment penalty
  • No monthly payment (on six month loans)
  • No employment verification
  • No minimum credit score requirement (credit report will be reviewed prior to loan review)
  • No income verification (no W-2’s, pay stubs or tax returns)
  • No cash-out at closing for construction work
  • Borrower may be required to bring cash to closing in some cases
  • No second mortgages – we only lend in first position
  • Loan amounts from $50,000 to $500,000
  • Plans & Specs
  • Construction draw schedule (4-6 draws)

Commercial Lending will be conducting progress inspections on your property. These inspections are mandatory, and are checking for the timeliness of the work being done on the home. Progress inspections will occur every 3 to 5 weeks. The inspector will contact you 2 to 3 days prior to the inspection so that an appointment can be made.

Construction Draw Escrows:

Funds for construction draws are withheld from the loan proceeds at closing of the purchase and funded upon completion of on-site work and satisfactory inspection by our inspector. Construction work must be completed in accordance with the agreed scope of work before inspection and funding. There will be no funds advanced for construction prior to completion of work. More information can be found here.

Draw Requests are reviewed every Tuesday and Friday. Draw inspections must be completed by 1pm the day before the meeting (Monday or Thursday). If draw inspection occurs after this deadline, the inspection report will be reviewed the next committee meeting.