Construction loans provide the capital infrastructure that transforms development visions into built reality throughout Utah's Wasatch Back region. In Park City and surrounding communities, where buildable land is increasingly scarce and buyer demand for quality housing remains strong, new construction represents both a significant opportunity and a complex financing challenge. Whether you're building a custom luxury home in Promontory, developing a spec home in Hideout, or constructing a small commercial building in Heber City, our construction financing delivers the structured funding and project oversight essential for successful completion.
The construction lending landscape in Summit and Wasatch Counties differs substantially from typical suburban markets. Mountain construction involves unique challenges, steep topography, winter weather constraints, wildlife considerations, and stringent aesthetic guidelines in many communities. Building costs run higher than national averages due to transportation logistics, specialized labor requirements, and premium material expectations. Successful construction financing requires lenders who understand these local factors and can structure loans that accommodate the realities of mountain development.
Our construction loans address the unique cash flow patterns of building projects. Unlike acquisition financing that provides a lump sum at closing, construction lending involves multiple disbursements aligned with project milestones. This structured approach protects both the borrower and lender while ensuring adequate capital throughout the construction period. We offer both ground-up construction financing for vacant land and major renovation loans that essentially rebuild existing structures, with terms and structures tailored to each project's scope and timeline.
Applications
Construction loans support diverse building projects across the varied development landscape of Wasatch County. Single-family custom homes represent a significant portion of our construction lending, as buyers seek mountain residences tailored to their specific needs and preferences. These projects range from modest family homes in Heber Valley communities to luxury estates in gated Park City developments like Glenwild, Victory Ranch, and Tuhaye. Custom construction allows buyers to optimize for views, orientation, energy efficiency, and lifestyle amenities that existing homes rarely provide.
Speculative home construction, building without a pre-sold buyer, enables developers to capitalize on strong demand in high-appreciation areas. In rapidly growing communities like Hideout, Snyderville, and the expanding Canyons Village area, spec homes often sell during construction or shortly after completion. Our construction financing supports spec builders with experience and market knowledge, providing leverage that amplifies returns while managing the inherent risks of building without committed buyers.
Multifamily and small commercial construction addresses the housing shortage and business expansion needs throughout the region. Duplexes and townhomes in Kamas, Oakley, and Coalville provide attainable housing options for local workers priced out of Park City proper. Small commercial buildings in Heber City, retail spaces in Kimball Junction, and mixed-use developments serve the growing permanent population and seasonal tourism economy. These projects require specialized construction lending that accommodates longer timelines, multiple units, and commercial code requirements.
Major renovation and reconstruction projects utilize construction loan structures when existing structures are essentially rebuilt. In Park City's historic districts and established neighborhoods, this approach preserves existing building footprints and community character while creating essentially new homes within original envelopes. Projects might include adding second stories, excavating basements, or completely replacing building systems and finishes. These hybrid new construction/renovation projects require the milestone-based disbursement approach of construction lending combined with the property assessment of renovation financing.
Common Challenges
Construction financing presents complex challenges that few lenders are equipped to handle. Cost estimation accuracy is critical, underestimating construction expenses by even 10% can eliminate project profitability or leave buildings incomplete. Mountain construction in particular involves variables that standard cost estimators miss: remote site access, winter weather delays, specialized structural requirements for snow loads and seismic conditions, and premium finish expectations in luxury markets. Our construction lending includes detailed budget review and contingency reserves that protect against cost overruns.
Contractor management and construction quality oversight present ongoing risks throughout the building process. Even experienced developers occasionally encounter contractor problems, scheduling delays, quality issues, subcontractor disputes, or financial difficulties that disrupt progress. Our construction lending includes site inspections at key milestones, verification that work is completed satisfactorily before disbursements, and early identification of emerging problems. This oversight function protects your investment and our loan while helping ensure projects complete on time and within budget.
Market timing and absorption risk affect speculative construction projects particularly. A home started when the market is strong might complete during a downturn, forcing price reductions or extended carrying periods. Construction loans carry higher interest rates than permanent financing and limited terms (typically 12-24 months), creating pressure if projects extend beyond expected timelines. Our lending approach includes realistic market assessments, conservative valuation assumptions, and extension options that provide flexibility without forcing distressed sales in soft markets.
Our Approach
Our construction loan process begins long before ground breaking, with comprehensive project evaluation during the planning phase. We review architectural plans, engineering reports, builder qualifications, construction budgets, and timeline projections with the thoroughness necessary to identify potential issues early. This diligence continues through permit acquisition, contractor selection, and final loan structuring, ensuring projects are genuinely ready for financing.
Budget analysis goes beyond surface-level review to examine line-item costs, compare against regional construction cost data, and validate contingency reserves. We engage quantity surveyors or construction consultants when projects warrant additional expertise. Loan structuring matches disbursement schedules to realistic construction phases, with interest reserves that cover carrying costs during the building period. This careful structuring prevents the cash flow squeezes that derail many construction projects.
Construction oversight continues throughout the building process with scheduled inspections at foundation completion, framing, mechanical rough-in, and substantial completion milestones. We verify work quality and completion percentages before authorizing disbursements, protecting loan proceeds and ensuring budgeted funds actually reach completed construction. Our network includes Utah-licensed contractors, engineers familiar with mountain construction requirements, and attorneys experienced in construction contracts and disputes. We coordinate with title companies for construction loan closings and permanent financing transitions.
Serving Our construction lending supports building projects throughout Summit and Wasatch Counties including custom homes in Park City neighborhoods and gated communities, spec home developments in Hideout and Snyderville, mountain retreats in Kamas, Oakley, and Woodland, and commercial construction in Heber City, Midway, and Coalville. We understand the unique permitting processes, building codes, and aesthetic guidelines governing construction across these diverse communities.