How the down payment works

[Brandon G.]

Hello all,

I have a question about a commercial construction loan (In this instance, getting a loan to purchase land as well as build mini storage)

Let's say the loan amount is 800,000 and we are going to put down 100,000 as a down payment.  Does this mean at the closing of the loan I will wire them 100,000 and they will wire me 800,000, or does this mean I wire them 100,000 and they give me 700,000.

Thank you,

[John Teachout]

Typically you would bring $100k to the closing for the seller and the lender brings $700k for the seller.

 Then you would also need to bring the rest of the closing costs as well. If this is a "construction loan" then those are often disbursed in increments as progress is made. Just ask your loan officer if you have any questions.