Construction loans provide the specialized financing necessary for building new structures and executing major renovation projects throughout Park City and the surrounding Utah mountain communities. Real estate development reaches its most capital-intensive phase during vertical construction, when significant funds must be available on demand to pay contractors, suppliers, and professionals while work progresses. Our hard money construction lending programs deliver the capital certainty and disbursement flexibility that successful construction projects require, supporting developers, investors, and homeowners in bringing their building visions to reality.
The construction financing process differs fundamentally from permanent real estate lending. Rather than disbursing funds at closing, construction loans provide capital in draws aligned with construction progress, ensuring that funds remain available throughout the building process while protecting lender interests. Interest typically accrues only on funds actually disbursed, reducing carrying costs during construction. These loans require sophisticated administration including inspections, draw verification, lien management, and coordination with contractors and title companies.
Park City's construction market encompasses diverse project types including custom homes, spec homes, multifamily developments, commercial buildings, and renovation of existing structures. Each project category presents unique construction challenges, timelines, and financing requirements. Mountain construction involves additional complexity including weather considerations, access limitations, specialized materials and methods, and skilled labor constraints. Our construction loan programs accommodate this diversity with experienced underwriting, flexible structures, and administration processes designed for real-world construction scenarios.
How We Help
Custom home construction financing enables homeowners and investors to build bespoke residences tailored to specific sites and lifestyle requirements. Park City's custom home market serves primary residents seeking mountain retreats, vacation home buyers wanting personalized properties, and investors building luxury spec homes for resale. Our construction loans support custom projects from groundbreaking through certificate of occupancy, with disbursement schedules aligned to construction milestones.
Speculative home construction supports builders developing homes for sale without pre-arranged buyers. This strategy requires market timing expertise, quality construction, and appropriate product positioning to achieve profitable sales. Our spec construction loans provide capital for land acquisition, hard and soft construction costs, and marketing periods, with structures accommodating the uncertain timing of spec home sales.
Multifamily and residential development construction financing supports apartment buildings, townhome communities, and residential subdivisions requiring substantial capital deployed over extended timelines. These projects involve complex coordination between vertical construction, infrastructure completion, and sales or lease-up activities. Our development construction loans accommodate phased projects with disbursement structures aligned to construction schedules and absorption timelines.
Commercial construction financing addresses office buildings, retail centers, industrial facilities, and mixed-use developments throughout the Park City region. Commercial projects typically involve longer construction periods, more complex permitting, and extended lease-up phases compared to residential construction. Our commercial construction loans provide the patient capital and flexible structures that commercial development requires.
Major renovation and reconstruction financing supports substantial improvements to existing structures, including gut renovations, additions, structural modifications, and complete rebuilding projects. These projects often face financing challenges because they don't fit standard new construction or purchase mortgage categories. Our renovation construction loans provide appropriate capital for transformational improvement projects with structures reflecting their unique characteristics.
Common Challenges
Construction projects encounter numerous challenges that create financing complexity including cost overruns, schedule delays, contractor disputes, weather interruptions, and material supply issues. Traditional construction lenders impose rigid requirements that compound these challenges, with inflexible draw schedules, stringent inspections, and limited accommodation for project changes.
Speculative projects without presales or pre-leasing face additional hurdles securing construction financing, particularly in volatile markets. Owner-builder projects present qualification challenges when borrowers lack general contracting experience. Projects with unique designs, unconventional materials, or complex engineering face skepticism from conventional lenders. Our hard money construction loans address these challenges with flexible structures and experienced administration.
Our Approach
We approach construction lending with recognition that successful projects require capital availability aligned with actual construction needs. Our draw administration processes verify completion before releasing funds while maintaining efficiency that keeps projects moving. We work with experienced builders, qualified architects, and reputable contractors to ensure quality construction that protects all parties' interests.
Construction loan structures provide interest-only payments on disbursed funds, interest reserves that cover carrying costs during construction, and extension options for projects experiencing unavoidable delays. We maintain realistic contingency requirements and work proactively with borrowers when projects deviate from initial plans. Our construction lending team includes professionals with building industry experience who understand construction realities and can provide valuable guidance throughout the project.
Serving Our Community
Our construction lending programs serve builders and developers throughout Park City, Heber City, Kamas, Oakley, Coalville, Midway, Francis, Woodland, Wanship, Peoa, Samak, Echo, Rockport, Hoytsville, Silver Creek, Hideout, Snyderville, and Kimball Junction. Each community presents distinct construction opportunities and challenges, from luxury custom homes in Park City proper to workforce housing in the Heber Valley and commercial development in growing business districts.