You’ve finished construction. The foundation is poured, the punch list is done, and your property is market-ready.
Now comes the next crucial step: refinancing into long-term debt.
Whether you’re holding for rental income, executing a BRRRR strategy, or just paying off your short-term construction loan, refinancing is the key to unlocking equity and securing lower-cost, scalable financing.
In this guide, we’ll break down exactly how to refinance after a build, which loan options work best, and what investors need to do to ensure a smooth transition from construction to permanent financing.
Why Refinance After Construction?
Most ground-up projects are funded with short-term construction loans—which typically come with:
- Higher interest rates (7%–12%)
- Short terms (6–18 months)
- Interest-only payments
- No long-term amortization
Once your project is stabilized, you’ll want to refinance into a 30-year mortgage, DSCR loan, or another structure that lets you:
- Lower your monthly payment
- Lock in long-term rates
- Pull out equity (cash-out refinance)
- Transition from a variable or hard money loan
- Start generating long-term rental income
