Build what’s next with a bank that understands what it takes.
A construction project starts with a vision. Bringing it to life takes the right team—and the right financing.
InBank offers construction loans for builders, developers, and businesses throughout Colorado and New Mexico, backed by experienced bankers who understand that construction financing is about more than funding a project. It’s about timelines, milestones, relationships, and having a banking partner who stays engaged from the beginning.
Whether you’re planning ground-up construction or investing in a renovation project, our business lending team can help you explore a financing structure aligned with your project and your goals.
Ready to start the conversation?
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How construction loans work
Construction financing works differently from a traditional term loan because funding generally follows the progress of the project.
Rather than receiving all loan proceeds at once, construction loans typically provide funding through a series of draws during the build. Those draws correspond with stages or milestones in the construction process, helping match financing with the work being completed.
During construction, borrowers may make interest-only payments on funds that have been advanced, depending on the structure of the loan. Once construction is complete, a construction loan may also transition to permanent financing depending on the financing arrangement and the needs of the borrower.
Every construction project is different. Property type, project scope, borrower qualifications and the overall financing structure can all affect how a construction loan is designed.
That’s why working directly with an experienced lender matters. An InBank banker can walk you through the process, explain what to expect and help determine an appropriate financing approach for your project.
Learn more about InBank business lending.
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Built for local builders, developers and businesses
Construction is local.
Markets differ. Project economics differ. Timelines change. And the people responsible for getting a project across the finish line need banking partners who understand the environment in which they operate.
InBank serves businesses across Colorado and New Mexico, providing construction financing with the accessibility and relationship focus of a community bank.
For contractors and construction companies, that relationship can extend beyond the construction loan itself. InBank works with Colorado contractors across their broader banking needs, giving our team an understanding of the financial demands that come with operating in the construction industry.
From managing cash flow between projects to moving money efficiently and financing future opportunities, we believe your banking relationship should support the business behind the build, not just an individual transaction.
Our approach is straightforward: understand your project, understand your business and give you direct access to people who can help.
Explore banking for Colorado contractors or learn more about InBank business banking solutions.
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Working with an InBank construction lender
A successful construction financing relationship starts long before the first draw.
When you meet with an InBank construction lender, we’ll take the time to understand the project you’re planning, how it fits into your broader business strategy and what you need from your banking relationship.
Depending on the project, your lender may discuss information such as:
- The scope and purpose of the construction project
- Project plans and anticipated milestones
- Property and project information
- Your construction budget
- Your experience and financial background
- The businesses and professionals involved in the project
- Your plans following completion of construction
From there, your banker can help you understand the lending process, what additional information may be needed and how financing could be structured around the project.
And because construction projects don’t operate in isolation, we can also talk about the broader financial needs surrounding your business—including treasury management solutions designed to help businesses manage cash flow, payments and day-to-day financial operations.
The goal is simple: a banking relationship where you know who to call and your banker knows what you’re building.
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Construction Loan FAQs
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01 How does a construction loan work?
A construction loan provides financing for a construction project, with funds typically advanced through draws as work progresses. Rather than funding the entire project at closing, financing is generally distributed throughout construction based on the structure of the loan and progress of the project.
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02 What is a construction loan draw schedule?
A draw schedule establishes stages during the construction process when loan funds may be advanced. Draws are generally connected to construction milestones or completed work, allowing financing to follow the progress of the project.
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03 Are construction loans interest-only during construction?
Construction loans may be structured with interest-only payments during the construction period, depending on the loan and borrower. Your InBank lender can discuss the financing structure available for your specific project.
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04 Does a construction loan convert to permanent financing?
A construction loan can be structured to transition to permanent financing after construction is complete. Available structures depend on the project, borrower and financing arrangement. An InBank construction lender can help you explore the options available for your project.
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05 Does InBank provide construction loans in Colorado and New Mexico?
Yes. InBank’s business lending team serves businesses in Colorado and New Mexico, including builders, developers and businesses seeking construction financing.
Let’s talk about what you’re building.
The right construction financing starts with understanding the project—and the people behind it.
Connect with an InBank construction lender to discuss your plans, your financing needs and how we can help support what comes next.
Or contact InBank to get started.
Equal Housing Lender. Loans and lines of credit are subject to credit approval.