Real Estate Development
From land development to vertical construction, our lending team is experienced in every phase of development.
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Visit UsAmerican Bank provides construction financing for various product types, such as, multifamily housing, industrial, retail, and hospitality, in all of our markets throughout Texas. We understand that local market knowledge adds value for our real estate clients.
Key points to consider:
- Construction draw periods are tailored to the project timeline.
- Payments during the draw period are interest-only and are typically a line item in the project budget.
- Advance rates are based on loan to cost and loan to value maximums, as determined by a certified appraisal.
- Loan maturities provide time for construction, lease-up, and stabilization of the project.
There are times when clients prefer not to refinance their completed project in the institutional market, but would rather place a permanent loan with the bank at project completion. Our bankers can provide financing for completed projects.
Key points to consider:
- Loan amounts are determined by an acceptable ratio of the loan amount to the appraised value of the project.
- Projects must generate cash flow to sufficiently cover debt service.
- Loan maturities generally do not exceed ten years, with loan amortizations typically not exceeding 20 - 25 years.
- Loans are subject to annual review of project occupancy and covenant compliance.
Helpful Resources
We can help small businesses get financial assistance and access to SBA loan programs.
American Bank has financed homebuilders and the construction of new single-family homes for more than 50 years.
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Lending solutions that can help you manage your company's operating cycle.
