Best Banks To Get A Commercial Construction Loan

Best banks to get commercial construction loan

Getting a commercial construction loan can often be frustrating and difficult.

But sometimes just trying to find the best bank to get your commercial construction loan can be even harder.

This is simply because not all banks offer short-term commercial real estate construction loans.

That is why so many commercial property developers turn to private or hard money lenders for construction loans before transitioning to a permanent loan at a large bank.

Before you begin your construction loan search you should be familiar with a few items like:

INTEREST RESERVE FUND – an account with borrowed funds used to make interest payments during the term of the loan

INTEREST RATE – rates on commercial construction loans are always higher due to higher risk

POINT – a fee charged by banks – normally 1% of the loan amount (hard money construction loans charge 2 – 10 points)

DRAW – a series of payments, often monthly, the bank advances to you for your construction loan project

TAKE OUT COMMITMENT LETTER – a guarantee of funding from the permanent loan lender

I have provided the following list of local and regional banks that offer commercial construction financing. This will hopefully make your search easier:

Find the best commercial construction loan:

Many experienced commercial real estate developers recommend beginning your construction loan search at local regional banks.

Here are a few to choose from in various states around the country:

Commercial construction lenders in California

Commercial construction lenders in California

Bank Of The West

Provident Bank

Pacific Premier

California Bank & Trust 

Community Bank

Bay Commercial Bank

Opus Bank

Heritage Bank Of Commerce

Commercial construction lenders in New York

Commercial construction loans in New York

Investors Bank

Spencer Savings Bank

City National Bank


Genesee Regional Bank

Valley National Bank

Commercial construction lenders in Florida

Commercial construction loans in Florida

Capital City Bank

Bank Of Central Florida

Pilot Bank

Florida Community Bank


Here is a list of national banks that do commercial construction lending. These are often good choices if you have a very large construction loan request.

Best Nationwide Commercial Construction Lenders

Wells Fargo 

PNC Bank


Prudential Mortgage

J.P. Morgan

Strategic Alliance Mortgage

CBRE Group

Commercial hard money loans are also available for construction loan financing.

Private money and hard money lenders can often provide the first round of your construction financing when large banks won’t.

Which is often the case since commercial construction loan requirements are so strict.

This is especially helpful when you need to fund your construction loan quickly.

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