Question: While the risks of construction lending may be less in a number of respects than those associated with land acquisition, banks still require a premium

While the risks of construction lending may be less in a number of respects than those associated with land acquisition, banks still require a premium in their lending rate as compensation for the risks involved. For construction loans, banks typically require a premium above LIBOR that ranges from

250 - 350

basis points.

150 - 250

basis points.

50 - 150

basis points.

0 - 50

basis points.

While the risks of construction lending may be

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