Structuring a Construction Loan Course Overview

This construction loan course dives into the factors that affect the structure of a loan for construction and real estate development. In this course, we break down the line items of a construction budget and proforma. We then look at how to calculate the interest expense and maximum loan amount on the construction loan by examining the timing of spend of different line items from the construction budget. We also examine quantitative and qualitative terms in the term sheet and how they affect the structure of the construction loan. Finally, this course builds out different construction development scenarios and looks at how loan repayment works in all these scenarios.

Structuring a Construction Loan Learning Objectives

Upon completing this course, you will be able to:
  • Understand the line items in a developer’s budget and derive a risk-assessed loan-to-cost
  • Review development and construction cash flows to calculate interest and financing fee values and funding mechanisms
  • Determine how the price of debt ties into the budget and project evaluation
  • Appreciate how qualitative loan terms can impact loan-to-cost and interest rates
  • Calculate various take-out scenarios
  • Examine how mezzanine debt and promote structures may fit into the total project assessment

Who should take this course?

This course is designed for current and aspiring Commercial Banking professionals in construction and real estate development. This course is also a great resource for real estate analysts and commercial mortgage brokers who wish to deepen their understanding of how construction loans are structured. By diving deeper into the lender’s perspective when structuring a loan, this course provides valuable insights for lenders, as well as brokers and advisors.

Structuring a Construction Loan

Led by Kathy Poettcker

Level 3

Approx 2.5h to complete

100% online and self-paced

Get Started

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Commercial Real Estate Finance Specialization

  • Skills Learned Real Estate Lending, Real Estate Financial Modeling, Construction Finance, Environmental Analysis and Due Diligence, Lease and Rent Roll Analysis
  • Career Prep Credit Analysts, Risk Manager & Credit Adjudicator, Private Real Estate Lenders, Real Estate Investors and Advisors, Commercial Mortgage Brokers, Commercial Relationship Managers

What Our Members Say

Important construction loan concepts were covered


Superior course
Superior course, thank you!

Eid A.Mordy Moawad Mostafa

Highly Satisfisfied
Highly recommended on construction loan structuring

Jayakrishnan Murukappan

Essential Course
This course is essential for credit analyst in real estate financial modeling.

Atinafu Asefa

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message.
What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
Are there any additional fees or costs?
None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.
What currency are your courses priced in?
All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
More Questions?
You can view more detailed information through our Help Center or Email us and we'll be happy to answer any of your questions
If you haven’t found your answer from our FAQ, please send us a message.
0 search results for ‘