Without the right builder loan program, even the best construction plans can stall. The right financial partner streamlines financing, accelerates draw releases, and keeps your build on schedule—making your choice of private lender one of the most important decisions you’ll make.
At CoFi, we understand the importance of timing, transparency, and trust in your success. This guide breaks down what to look for in a lender, how to identify key differences in builder loan programs, and why these three factors matter most.
Understanding the Differences Between Private Lenders
Not all banks are the same — and the same goes for private lenders. While traditional banks often operate with rigid underwriting standards and approval processes, private lenders are designed to move faster and better align with your project’s goals.
Still, within the private lending space, experiences can vary widely. Some lenders focus on quick deals and one-size-fits-all terms, while others — like CoFi — combine modern technology, construction expertise, and personalized service to deliver builder loan programs that truly support your project’s success.
Here are the main factors that set lenders apart:
- Loan structure – Some lenders focus on short-term fix-and-flip projects, while others — like CoFi — specialize in ground-up construction, production, and track, and modular developments.
- Approval speed – Funding timelines can range from just a few days to several weeks.
- Draw process – Efficient inspections and timely fund disbursements are essential for maintaining cash flow. Look for lenders who leverage digital tools to simplify this process.
- Fee transparency – Reputable lenders make all costs, rates, and timelines clear from day one — with no surprises.
When comparing options, don’t focus solely on interest rates. Pay attention to how the lender communicates, how quickly they move, and how well they understand your business.
Why Transparency, Flexibility, and Expertise Matter
Transparency goes far beyond sharing a rate sheet — it’s about being clear, consistent, and proactive at every stage of the lending process.
A transparent lender will:
- Explain loan terms, fees, and contingencies in clear, straightforward language.
- Keep you informed throughout underwriting, approval, and funding.
- Share inspection reports and draw schedules openly.
At CoFi, transparency isn’t a buzzword — it’s how we build trust. You’ll always know where your project stands, what’s next, and when funds are coming.
Flexibility
Every construction project comes with its own set of challenges — that’s why flexibility matters. A lender who truly understands the industry will:
- Tailor loan terms to fit your construction schedule.
- Adjust draws when unexpected costs or delays arise.
- Collaborate with you to resolve title or permitting issues, rather than halting progress.
CoFi’s flexible lending model is built to support the realities of construction — because no two builds are the same.
Technical Expertise
Construction financing is more complex than a standard loan — it requires a lender who understands not only capital, but also residential and commercial construction.
The best lenders bring:
- Proven experience with multifamily, commercial, and residential builds.
- In-house teams that understand budgets, schedules, and compliance.
- Technology that streamlines inspections, reporting, and draw management.
With CoFi, you’re not just working with loan officers — you’re partnering with construction finance specialists who know how to keep your projects on track.
Comparing Private Construction Lenders:
| Feature | Traditional Banks | CoFi Lending |
| Funding Speed |
30–90 days |
10–15 days |
|
Flexibility |
Rigid underwriting, limited options |
Terms tailored to your project |
| Transparency |
Hidden fees and slow communication |
Complete fee clarity and real-time updates |
| Expertise |
General loan officers |
Construction finance specialists |
| Draw Process |
Manual, slow approvals |
Streamlined, digital, and responsive |
| Support |
Transactional relationship |
Hands-on partnership from start to finish |
Choosing the Right Construction Loan Program
Before committing, it’s important to ask every potential lender the right questions — especially if you’re comparing CoFi’s loan programs to other options:
- How quickly can you close and fund after approval?
- What is your process for draws and inspections?
- Do you charge any hidden fees or change terms after commitment?
- Who will be my main point of contact during the project?
If a lender hesitates or avoids details, that’s a red flag.
With CoFi, you’ll get clear answers, transparent timelines, and a dedicated lending team that supports your project from start to finish.
Final Thoughts
Choosing the right private construction lender isn’t just about securing financing — it’s about building a partnership with experts who understand your goals and are committed to your success.
With CoFi Lending, you gain a trusted partner known for transparency, flexibility, and true construction expertise. From underwriting to your final draw, CoFi is designed to help your project move faster, smarter, and with complete confidence.
Ready to start your next project with a lender who truly understands construction?
Connect with CoFi Lending today.
