A construction project is a significant investment; securing the right financing is crucial to its success. Whether building a new structure or renovating an existing one, a loan can help you realize your vision. This guide provides all the information you need about obtaining construction loans in North Carolina, including the available benefits and other pertinent factors.
Construction Loans in NC
Construction loans in North Carolina offer several benefits to borrowers. Firstly, they provide flexible terms and can tailor financing to your specific needs. For example, financing can be a lump sum for purchasing materials, hiring contractors, and paying permits. Once the construction project is completed, the loan can also help secure a permanent mortgage.
Construction loans provide short-term financing for building or renovating a structure. Banks, credit unions, and other lending institutions typically offer this type of funding. They can be used for both residential and commercial projects. A list of credit unions in the state includes:
- State Employees’ Credit Union (SECU)
- Coastal Federal Credit Union
- Carolina Postal Credit Union
- Truliant Federal Credit Union
- Self-Help Credit Union
- Local Government Federal Credit Union (LGFCU)
- Teachers Federal Credit Union (TFCU)
- Triangle Credit Union
- CommonWealth One Federal Credit Union
- Carolinas Telco Federal Credit Union
How to Qualify
To qualify for a construction loan in North Carolina, you must meet specific requirements set by the lender. These requirements may include a minimum credit score, proof of income, and a detailed construction plan. You may also need to provide a down payment and a contractor’s bid for the project. Please read the linked page in this section for a more detailed view of what to expect.
Why Build in North Carolina?
North Carolina offers a comfortable living environment all year round, with warm summers and mild winters. With diverse industries, including agriculture, manufacturing, and technology, the state offers ample job opportunities and a low cost of living. It is also rich in natural beauty, from rolling hills and pristine beaches to parks and recreational areas. With a mix of urban, suburban, and rural settings, the state offers a range of lifestyles to suit everyone’s needs. In addition, the state has several museums, galleries, and theaters showcasing local artists and performers, including several historic sites and landmarks.
North Carolina’s economy for the building has been thriving in recent years, with several factors contributing to its success. The state had a gross domestic product (GDP) of $592.7 billion in 2020, making it the ninth-largest state economy in the United States. It has also seen strong job growth, with a 4.7% increase in non-farm employment from October 2020 to October 2021. The state is one of the fastest-growing states in the country, with a population of nearly 10.7 million people as of 2021. This has created a strong demand for new housing and commercial development, providing opportunities for builders and contractors.
North Carolina has implemented several business-friendly policies that have made it easier for builders and contractors to do business in the state. For example, the state offers tax incentives for companies that create jobs, invest in research and development, or relocate to the state. The construction market here is strong and growing, with several large-scale projects underway. According to the U.S. Census Bureau, construction spending in the state totaled $18.2 billion in 2020, with most spending on private residential and commercial projects.
Overall, these factors have helped to make North Carolina’s economy for building more attractive to builders and contractors. While the state faces challenges like any other, it has shown a solid commitment to supporting the construction industry and creating opportunities for new developments. Construction loans provide a great way to finance your construction project. Whether building a new structure or renovating an existing one, our team of experts can help you secure the best financing for your needs. Contact us to schedule a call and learn about your options.
Finding a City to Break Ground
North Carolina is a beautiful state with many great cities offering diverse attractions, cultures, and lifestyles. Knowing what each city offers will give you a glance at what you can expect while living here or help determine if the demographic is right for your new development. For instance, Raleigh, known as the “City of Oaks,” is the capital of North Carolina and is a great place to live for families and young professionals. The city has a thriving tech industry, excellent schools, and is home to several museums and cultural institutions. The largest city in North Carolina, Charlotte, offers a more diverse range of entertainment, dining, and shopping options. It is also a great place to live for families, with excellent schools and a recently expanding job market.
Another city on our list is the “City of Medicine.” Durham is home to several world-renowned medical institutions and research centers. The city is excellent for food lovers, with a thriving restaurant scene and various local food trucks. The last notable mention is Wilmington. It is a great place to live for those who love the beach and outdoor activities. The city also has several historical sites, museums, and theaters.
North Carolina has something to offer everyone with its diverse cities and beautiful landscapes. Whether you’re seeking a thriving city life or a more laid-back lifestyle, a city here is perfect for you. So what’s stopping you from building your dream home? Contact us today to tailor a specific loan for you.
Wherever you plan to settle or build a thriving business, Tier has a hand to lend. Looking for a construction loan? We work with the following states and counting: