This Structuring a 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.
Upon completing this course, you will be able to:
CFI’s Certified Banking & Credit Analyst (CBCA)® Program offers skills including credit evaluation, documentation, and review procedures. For beginners to advanced users, the CBCA® program is designed to help you become a world-class credit analyst.
This Structuring a Construction Loan course is designed for current and aspiring Commercial Banking professionals working in the construction and real estate development industry. 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.