Construction Loans | Mizrahi Tefahot Bank LTD

Construction Loans

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Execute your ground-up multi-family construction project in Los Angeles with flexible, short-term financing

When you need to finance your investment property construction, commercial construction loans can provide a cost-effective and flexible solution.


With commercial construction loans for multi-family development projects, you can:

  • Cover land purchase, site prep, and construction costs on new, multi-family projects.
  • Disburse funds to align with set construction phases.
  • Make interest-only payments on your balance.
  • Work with our lenders for long-term financing solutions after your project is complete.

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What is a multi-family real estate construction loan?

Traditional real estate loans are used to purchase existing properties. Construction loans are a form of financing that can be used for building projects. You can use a construction loan from UMTB to cover the development of residential housing units, from planning stages to securing occupancy.

How much can I borrow with a multi-family real estate construction loan?

The total amount you can borrow depends on your specific financial situation and project. Your lender will take a number of financial ratios and circumstances into consideration when evaluating your application, including the success and scale of your prior projects, your LTV (loan-to-value) and LTC (loan-to-cost) ratios, projected construction costs, your cash reserve funds, and your debt-service coverage ratio (debt payments vs. income). Your UMTB lender will work with you one-on-one to determine your qualification.

How does the loan disbursement process work?

Working with you and your builder, we will create a construction loan draw schedule for incremental payments (draws), paid to your builder over the course of your project and tied to specific project phase completion milestones. Final payments will not be disbursed until the project is completed to everyone’s satisfaction, helping to encourage a timely, quality effort.