Ground Up Construction Loans — Build From Dirt to Finished | Investor Funding Guide
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🏗 NEW CONSTRUCTION FINANCING

GROUND UP
CONSTRUCTION

Finance your build from dirt to finished. Land acquisition, vertical construction, and soft costs — all in one loan, with structured draws aligned to your build schedule.

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QUICK STATS

Typical ground-up construction parameters
Loan Amount$250K – $20M
Loan-to-CostUp to 85%
Loan-to-ARVUp to 70%
Rates From10.49%
Term12 – 24 months
InterestInterest-only
WHAT WE FUND

From raw land to certificate of occupancy.

Our ground-up construction loans cover every cost from breaking ground to final inspection. Whether you're building one spec home or a 50-unit subdivision, we structure financing that aligns with how builds actually happen — not how banks wish they happened.

Funds are released in draws as construction milestones are completed. You only pay interest on the outstanding balance, so your carrying costs ramp up gradually as the project progresses.

  • ✓ Land acquisition included
  • ✓ Hard costs (materials, labor, GC fees)
  • ✓ Soft costs (permits, plans, fees)
  • ✓ Interest reserve (no monthly out-of-pocket)
  • ✓ Refinance to long-term DSCR upon completion

EXAMPLE BUILD

Single-family spec home, 2,400 sqft.

Land Cost$95,000
Hard Costs$285,000
Soft Costs$32,000
Total Project Cost$412,000
Loan (85% LTC)$350,200
ARV (Sale Price)$580,000
Estimated Profit$168,000
LOAN TERMS

CONSTRUCTION LOAN TERMS

Designed for builders, developers, and serious investors taking on new construction.

$
$20M
Max Loan Amount
%
85%
Loan-to-Cost
📊
70%
Loan-to-ARV
📅
24MO
Max Term
DRAW SCHEDULE

HOW DRAWS WORK

Funds release as you complete construction milestones. Submit snap photos of the completed work, then capital wires to you within 24-48 hours.

1

FOUNDATION

Site work, excavation, footings, and foundation poured. ~15-20% of construction budget.

2

FRAMING & ROOF

Framing, sheathing, roof, windows, and exterior dried-in. ~25-30% of construction budget.

3

MECHANICALS

Plumbing, electrical, HVAC rough-in, insulation, and drywall. ~25% of construction budget.

4

FINAL FINISH

Trim, flooring, cabinets, fixtures, paint, and certificate of occupancy. ~25-30%.

PROJECT TYPES

WHAT WE FUND

🏠

SINGLE-FAMILY SPEC

Build-to-sell single family homes in growth markets. From $250K to $5M+ per unit.

🏘

SUBDIVISIONS

5-100+ home subdivisions and tract development with phased draw schedules.

🏢

SMALL MULTIFAMILY

Duplex, triplex, fourplex, and 5-50 unit apartment buildings. Build-to-rent or build-to-sell.

🏗

BUILD-TO-RENT (BTR)

Single-family rental communities and BTR portfolios with bridge-to-DSCR refinance.

🏬

MIXED-USE

Ground-floor retail with residential above. Up to 80% LTC for experienced developers.

🛠

ADU PROJECTS

Accessory dwelling units and lot splits. Add density and equity to existing properties.

WHAT YOU'LL NEED

Standard documentation for a ground-up construction loan.

  • → Building plans & permits (or permit-ready)
  • → Detailed construction budget & schedule
  • → Licensed general contractor with track record
  • → Comparable sales supporting ARV
  • → Borrower equity (15-25% of total project cost)
  • → 6-9 months of liquidity reserves
EXIT STRATEGY

Plan your exit before you break ground.

Every construction loan needs a clear exit. Most builders use one of three strategies depending on the project type and market conditions:

  • ✓ Sale at completion — Most spec builds.
  • ✓ Refinance to DSCR — Build-to-rent strategies.
  • ✓ Refinance to permanent agency loan — Multifamily 5+ unit projects.

We can pre-approve your exit financing alongside the construction loan, so there's certainty of takeout when the project completes.

FAQ

CONSTRUCTION QUESTIONS

Do I need to have building experience?
For first-time builders, we require a licensed and experienced general contractor with verifiable past projects. Experienced builders/developers (3+ completed projects) get better rates and higher LTC. Owner-builders are accepted in some markets with stronger reserves.
Are permits required at closing?
Most lenders require permits in hand at closing — or "permit-ready" with a clear path. Some programs allow closing on the land first as a separate transaction, then funding construction once permits are pulled. We'll structure based on your timeline.
How much cash do I need to bring?
Typically 15-20% of total project cost (land + construction + soft costs). Stronger borrowers with multiple completed projects can get to 90% LTC, requiring only 10% down. Plus you'll need 6-9 months of liquidity reserves separate from the down payment.
What happens if construction goes over budget?
Cost overruns are the borrower's responsibility, which is why we underwrite carefully and require a contingency reserve (typically 5-10% of hard costs) in the budget. If overruns exceed reserves, we may consider a budget modification depending on the deal — but plan conservatively up front.
Can I include the interest in the loan?
Yes — most construction loans include an interest reserve, meaning monthly interest payments are funded from the loan itself for the duration of construction. You don't make out-of-pocket payments while building. The reserve is sized based on projected draw schedule and term.
How fast can I close?
Construction loans typically close in 21-30 days due to plan review, budget verification, and permit confirmation. Pre-vetted, permit-ready projects with experienced borrowers can close in 14-21 days.

READY TO BREAK GROUND?

Get pre-qualified for your construction loan in 60 seconds. We'll review your plans and structure the right financing.

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