Top 10 Lenders for Commercial Construction-to-Permanent Loans in the U.S.
Commercial construction-to-permanent loans play a crucial role in financing large-scale building projects. These specialized loans provide funding for both the construction phase and long-term financing once the project is complete, streamlining the borrowing process for developers and investors.
Selecting the right lender for a commercial construction-to-permanent loan can significantly impact a project’s success and profitability. The top lenders in this field offer competitive rates, flexible terms, and extensive experience in handling complex commercial real estate transactions. This article examines the leading financial institutions providing these essential loans in the United States.
1. Wells Fargo Commercial
Wells Fargo Commercial stands as a prominent player in the commercial construction-to-permanent loan market. The bank offers a comprehensive suite of financing solutions tailored to meet the diverse needs of commercial real estate developers and investors.
With a strong national presence, Wells Fargo provides loans for various property types, including office buildings, retail centers, and multifamily complexes. Their construction-to-permanent loans combine short-term construction financing with long-term permanent financing in a single product.
Wells Fargo’s experienced team of commercial real estate professionals works closely with borrowers to structure loans that align with project timelines and financial objectives. The bank’s deep industry knowledge and extensive resources enable them to handle complex transactions efficiently.
Loan terms at Wells Fargo are competitive, with options for both fixed and variable interest rates. The bank also offers flexible repayment schedules and loan amounts to accommodate projects of different scales.
Wells Fargo’s reputation for financial stability and its wide range of banking services make it an attractive choice for many commercial real estate developers. The bank’s ability to provide additional financial products and services alongside construction-to-permanent loans can be advantageous for borrowers seeking a comprehensive banking relationship.
2. Chase Bank Construction Loans
Chase Bank offers robust construction loan options for commercial projects across the United States. Their construction-to-permanent loans provide financing for both the building phase and long-term ownership of commercial properties.
Chase’s construction loans typically cover up to 80% of the project’s cost, with loan amounts ranging from $500,000 to $25 million. These loans feature competitive interest rates and flexible terms tailored to each project’s specific needs.
One notable aspect of Chase’s construction loans is their streamlined process. They assign a dedicated relationship manager to guide borrowers through each step, from application to completion.
Chase Bank provides construction financing for various commercial property types, including office buildings, retail centers, industrial facilities, and multifamily housing. Their loans can be used for new construction, major renovations, or expansions of existing properties.
The bank’s construction loans often include interest-only payments during the construction period, followed by a permanent loan phase with principal and interest payments. This structure helps borrowers manage cash flow during the building process.
Chase Bank’s strong financial position and extensive network of branches across the country make it a reliable choice for commercial construction financing. Their experience in handling complex projects and understanding of local markets adds value for borrowers.
3. Bank of America Commercial Real Estate
Bank of America stands as a major player in commercial real estate lending. The institution offers a wide range of construction-to-permanent loan options for commercial projects across the United States.
Their loan programs cater to various property types, including office buildings, retail centers, multifamily housing, and industrial facilities. Bank of America’s experienced team of commercial real estate professionals provides tailored solutions to meet specific project needs.
The bank’s construction-to-permanent loans feature competitive interest rates and flexible terms. Borrowers can benefit from a single closing process, which streamlines the transition from construction to permanent financing.
Bank of America’s extensive network of branches and online services offers convenience for borrowers. Their robust financial resources allow them to handle large-scale commercial projects with ease.
The institution’s commitment to sustainable building practices is reflected in their green lending initiatives. They offer incentives for energy-efficient and environmentally friendly construction projects.
Bank of America’s commercial real estate division maintains strong relationships with developers, investors, and property owners. This network contributes to their deep understanding of market trends and local economic conditions.
Their loan approval process is known for its thoroughness and efficiency. The bank’s underwriting team conducts comprehensive analyses to ensure project viability and minimize risks for both the lender and borrower.
4. PNC Real Estate
PNC Real Estate stands out as a prominent lender for commercial construction-to-permanent loans in the United States. As a division of PNC Bank, one of the largest financial institutions in the country, it offers a wide range of financing solutions for commercial real estate projects.
PNC Real Estate provides construction-to-permanent loans for various property types, including multifamily, office, retail, and industrial developments. These loans combine the construction phase financing with long-term permanent financing, streamlining the process for borrowers.
The lender offers competitive interest rates and flexible terms tailored to meet the specific needs of each project. PNC Real Estate’s loan amounts can range from $5 million to over $50 million, depending on the project scope and requirements.
One of PNC Real Estate’s strengths is its experienced team of professionals who understand the complexities of commercial real estate financing. They work closely with borrowers to structure loans that align with project timelines and cash flow projections.
PNC Real Estate also provides additional services such as treasury management and capital markets solutions, offering a comprehensive approach to commercial real estate financing. This integrated approach can be beneficial for developers and investors managing large-scale projects.
The lender’s nationwide presence allows it to serve clients across the United States, with a strong focus on major metropolitan areas and growing markets. PNC Real Estate’s extensive market knowledge enables it to provide valuable insights and support throughout the loan process.
5. U.S. Bank Commercial Construction Loans
U.S. Bank offers commercial construction loans tailored to businesses and developers. These loans provide financing for various commercial real estate projects, including office buildings, retail spaces, and multifamily properties.
The bank’s construction-to-permanent loans combine the construction phase and long-term financing into a single loan product. This streamlined approach simplifies the borrowing process and reduces closing costs for borrowers.
U.S. Bank’s commercial construction loans feature competitive interest rates and flexible terms. Borrowers can choose between fixed and variable rate options, depending on their preferences and market conditions.
The bank provides loans for both ground-up construction and major renovation projects. Loan amounts typically range from $1 million to $50 million, with larger loans available for qualified borrowers.
U.S. Bank assigns dedicated relationship managers to guide clients through the loan process. These professionals offer personalized support and expertise in commercial real estate financing.
The bank’s construction loan program includes features such as interest-only payments during the construction phase and the ability to lock in long-term rates early in the process. This helps borrowers manage cash flow and mitigate interest rate risk.
U.S. Bank’s strong financial position and extensive experience in commercial real estate lending make it a reliable choice for construction financing. The bank’s national presence allows it to serve clients across the United States.
Borrowers can access additional banking services through U.S. Bank, including treasury management and deposit accounts. This comprehensive approach can simplify financial management for commercial real estate developers and investors.
6. Truist Bank Construction Loans
Truist Bank offers comprehensive construction-to-permanent loan options for commercial projects across the United States. This lender, formed from the merger of SunTrust and BB&T, brings extensive experience in commercial real estate financing.
Truist provides flexible loan terms tailored to meet the diverse needs of developers and investors. Their construction-to-permanent loans typically feature competitive interest rates and loan-to-value ratios up to 80%.
The bank’s loan programs cater to various commercial property types, including multifamily, office, retail, and industrial developments. Truist’s construction loans often include interest-only payments during the construction phase, transitioning to principal and interest payments upon project completion.
Truist Bank employs a team of experienced commercial real estate specialists who work closely with borrowers throughout the loan process. They offer guidance on structuring deals and navigating complex financing requirements.
The lender’s strong regional presence in the Southeast and Mid-Atlantic regions allows for local market expertise. However, Truist also serves clients nationwide, leveraging its extensive network and resources.
Truist Bank’s construction-to-permanent loans typically feature loan amounts starting from $1 million, with larger loans available for qualified borrowers and projects. The bank’s financial stability and commitment to commercial real estate make it a reliable choice for developers seeking construction financing.
7. KeyBank Real Estate Capital
KeyBank Real Estate Capital stands out as a prominent lender for commercial construction-to-permanent loans in the United States. This division of KeyCorp offers a wide range of financing solutions tailored to meet the needs of commercial real estate developers and investors.
The bank’s construction-to-permanent loan program provides seamless transitions from the construction phase to long-term financing. This approach eliminates the need for separate loans, reducing paperwork and potential delays for borrowers.
KeyBank’s extensive experience in the commercial real estate sector enables them to offer competitive rates and terms. They work with various property types, including multifamily, office, retail, and industrial developments.
The lender’s nationwide presence allows them to serve clients across the country. Their team of experienced professionals provides personalized support throughout the loan process, from initial application to project completion.
KeyBank Real Estate Capital also offers additional services such as treasury management and capital markets solutions. This comprehensive approach can benefit borrowers seeking a one-stop financial partner for their commercial real estate projects.
The bank’s strong financial position and reputation in the industry make it a reliable choice for construction-to-permanent financing. Their commitment to client relationships and understanding of local markets contribute to their success in this lending niche.
8. Citizens Bank Commercial Lending
Citizens Bank offers commercial construction-to-permanent loans as part of its comprehensive lending services. The bank provides financing solutions for various commercial real estate projects, including new construction and renovations.
Citizens Bank’s construction-to-permanent loans feature competitive interest rates and flexible terms. These loans typically cover both the construction phase and the permanent financing, simplifying the borrowing process for commercial developers and investors.
The bank’s experienced commercial lending team works closely with clients to tailor loan structures to specific project needs. Citizens Bank offers loan amounts ranging from $1 million to $50 million or more for qualified borrowers.
One of the advantages of Citizens Bank’s commercial lending program is its streamlined approval process. The bank leverages its extensive network and industry expertise to expedite loan decisions and closings.
Citizens Bank also provides additional services to support commercial construction projects. These may include treasury management solutions, interest rate hedging, and other financial products to help manage risk and optimize cash flow.
The bank’s commercial lending division serves a wide range of industries, including multifamily housing, office buildings, retail centers, and industrial properties. Citizens Bank maintains a strong presence in the Northeast and Mid-Atlantic regions, with a growing national footprint.
Borrowers can benefit from Citizens Bank’s local market knowledge and personalized approach to lending. The bank’s relationship managers work to understand each client’s unique business goals and financial requirements.
9. Fifth Third Bank Construction Loans
Fifth Third Bank offers comprehensive construction-to-permanent loans for commercial projects across the United States. These loans provide financing for both the construction phase and long-term mortgage in a single package.
Fifth Third Bank’s construction loans cater to various commercial property types, including office buildings, retail centers, and industrial facilities. The bank’s experienced lending team works closely with borrowers to structure loans that meet specific project needs.
Loan terms typically range from 5 to 25 years, with competitive interest rates based on market conditions and borrower qualifications. Fifth Third Bank offers both fixed and variable rate options, allowing borrowers to choose the best fit for their financial strategy.
The bank’s construction-to-permanent loans feature a single closing process, reducing paperwork and saving time for borrowers. This streamlined approach helps minimize administrative burdens and expedites project timelines.
Fifth Third Bank provides flexible draw schedules tailored to each project’s unique requirements. This allows borrowers to access funds as needed throughout the construction phase, optimizing cash flow management.
The bank’s construction loan program includes ongoing project monitoring and inspections to ensure progress aligns with approved plans. This oversight helps mitigate risks for both the borrower and the lender.
Fifth Third Bank’s extensive network of branches across the Midwest and Southeast United States enables local market expertise and personalized service for borrowers in these regions.
10. Regions Bank Real Estate Lending
Regions Bank offers comprehensive real estate lending solutions, including commercial construction-to-permanent loans. Their expertise spans various property types, from office buildings to multifamily developments.
The bank’s construction-to-permanent loans provide financing for both the construction phase and long-term ownership. This seamless transition eliminates the need for separate loans, streamlining the process for borrowers.
Regions Bank tailors loan terms to meet specific project needs. They offer competitive interest rates and flexible repayment options, catering to diverse borrower requirements.
The bank’s experienced team of real estate professionals provides personalized guidance throughout the lending process. They assist clients in navigating complex financial decisions and structuring loans effectively.
Regions Bank maintains a strong presence in the southeastern United States. Their deep understanding of local markets enables them to offer valuable insights to borrowers in these regions.
The bank’s commitment to technology enhances the loan application and management process. Online tools and mobile apps allow borrowers to track their loans and access important information conveniently.
Regions Bank’s financial stability and extensive resources position them as a reliable lender for large-scale commercial construction projects. Their ability to handle substantial loan amounts makes them attractive to developers of significant real estate ventures.
Key Features of Construction-to-Permanent Loans
Construction-to-permanent loans combine financing for both the construction phase and long-term mortgage into a single loan product. These loans offer unique features tailored to the needs of commercial property developers and investors.
Understanding Loan Structure
Construction-to-permanent loans typically have two distinct phases. During the construction phase, borrowers make interest-only payments on the funds drawn. This period usually lasts 12–18 months, depending on the project timeline.
Once construction is complete, the loan automatically converts to a permanent mortgage. At this point, borrowers start making principal and interest payments based on the full loan amount.
Some lenders offer a single closing process, reducing paperwork and fees. This streamlined approach can save time and money compared to separate construction and permanent loans.
Interest Rates and Terms
Interest rates for construction-to-permanent loans are often variable during the construction phase. They may be tied to a benchmark like the prime rate or LIBOR, plus a margin.
Upon conversion to the permanent phase, borrowers can typically choose between fixed and adjustable rates. Fixed rates provide stability, while adjustable rates may offer lower initial payments.
Loan terms generally range from 5 to 30 years for the permanent phase. Longer terms can result in lower monthly payments but higher total interest costs over the life of the loan.
Lenders may require a higher down payment compared to traditional mortgages, often 20–30% of the project cost. This helps mitigate the additional risk associated with construction lending.
Benefits of Choosing Commercial Construction-to-Permanent Loans
Commercial construction-to-permanent loans offer significant advantages for businesses undertaking building projects. These loans provide financial flexibility and simplify the borrowing process.
Flexibility in Funding
Construction-to-permanent loans allow borrowers to access funds as needed during the building phase. This feature helps manage cash flow effectively, as businesses only pay interest on the amount drawn.
Lenders typically offer multiple disbursements throughout the construction period. This approach aligns with project milestones and helps control costs.
Once construction is complete, the loan automatically converts to a permanent mortgage. This transition eliminates the need to secure separate financing for the completed property.
Borrowers can often lock in interest rates at the start of the project. This protects against potential rate increases during the construction period.
Streamlined Loan Process
Construction-to-permanent loans combine two lending products into one. This integration saves time and reduces paperwork for borrowers.
Businesses avoid the hassle of applying for separate construction and permanent loans. A single application and approval process covers both phases of the project.
Closing costs are typically lower with a combined loan. Borrowers pay fees for one loan instead of two separate transactions.
The seamless transition from construction to permanent financing minimizes disruptions. There’s no need to refinance or seek new lenders once the building is complete.
This loan structure often results in faster project timelines. Businesses can focus on construction without worrying about securing long-term financing later.
Frequently Asked Questions
Commercial construction-to-permanent loans involve complex processes and eligibility criteria. Lenders offer varying terms and rates based on location and project specifics.
What are the leading commercial construction loan lenders for 2025?
Wells Fargo Commercial, Chase Bank Construction Loans, and Bank of America Commercial Real Estate rank among the top lenders for commercial construction loans in 2025. These institutions offer competitive rates and flexible terms for various project types.
PNC Real Estate and U.S. Bank Commercial Construction Loans also provide robust financing options for commercial developers and investors.
How do I qualify for a construction-to-permanent loan?
Qualifying for a construction-to-permanent loan typically requires a strong credit score, usually 680 or higher. Lenders assess the borrower’s debt-to-income ratio, which should generally be below 43%.
A down payment of 20–30% is often required. Developers must present a detailed project plan, including cost estimates and projected timelines.
Which banks are currently the most competitive in offering construction loans in North Carolina?
In North Carolina, Bank of America and Wells Fargo offer competitive construction loan programs. Local institutions like First Citizens Bank and BB&T (now Truist) also provide attractive terms for commercial construction projects in the state.
These banks consider factors such as project location, borrower experience, and loan-to-value ratios when determining loan terms.
What are the best options for construction loans in Tennessee?
First Horizon Bank and Pinnacle Financial Partners are prominent lenders for construction loans in Tennessee. These institutions offer tailored solutions for local commercial development projects.
National banks like U.S. Bank and Chase also maintain a strong presence in Tennessee, providing competitive construction loan options.
Is Wells Fargo currently offering construction-to-permanent loans, and how do their terms compare?
Wells Fargo continues to offer construction-to-permanent loans in 2025. Their terms are competitive, with interest rates typically ranging from 5.5% to 7%, depending on creditworthiness and project specifics.
Wells Fargo’s loans often feature flexible draw schedules and conversion options from construction to permanent financing.
Who are the top lenders for commercial construction loans as of 2025?
As of 2025, Wells Fargo Commercial, Chase Bank, and Bank of America remain top lenders for commercial construction loans. These institutions offer nationwide coverage and substantial loan amounts for large-scale projects.
PNC Real Estate and U.S. Bank round out the top five, providing specialized financing solutions for various commercial construction needs.
