Construction Loans for Builders Who Have
The lot and the build in one loan. Up to 75% of the land with permits in hand, 100% of the construction budget held back and released as you build, interest only, for infill lots and small developments.
Ground-up is for investors with construction behind them: prior ground-up projects, or substantial renovation experience in line with the build. When the house is finished, sell it or lease it and refinance into a DSCR rental loan with the same team.
Land, construction, and carry.
A ground-up construction loan has three parts: an initial advance against the lot, a construction holdback that funds the build in draws, and, if you want it, a financed interest reserve of up to six months so the carrying cost does not come out of pocket while the house goes up.
The initial advance is sized on the lesser of what you paid for the land and what it is worth. With permits in hand it runs up to 75%; without permits it starts at 60%, and a catch-up draw releases the difference the moment the permits are approved. Interest accrues on funds actually disbursed once the loan is above $100,000.
Build the budget with the free Budget Builder, phase it with the Draw Schedule Builder, and pressure-test the exit with the Exit Strategy Stress Test.
- Up to 75% of the land with permits; 60% without, with a catch-up draw when permits issue
- 100% of the construction budget, held back and drawn
- Up to 85% of total cost; 90% with a financed interest reserve
- Up to 70% of the completed value
- $50,000 to $1,000,000; larger loans by review
- 12-month term, interest only; 18 to 24 months by arrangement
- 1-4 unit residential, single lots and small developments of up to two properties
- Nationwide - see Where We Lend
These are program maximums. Your leverage depends on your construction track record, the permits, credit, and the project. Rate, points, and fees are quoted with the term sheet.
From lot to certificate of occupancy.
The file is read on the lot, the plans, the budget, the completed value, and what you have built before.
The lot address and cost, the plans, the construction budget, the completed value, and the ground-up projects you have finished. Permits if you have them, an architect letter if you do not.
We size the loan against the land, the budget, and the completed value and respond with a term letter. The valuation is ordered as soon as you accept.
The initial advance funds the land at closing. The construction budget is set aside as the holdback. Without permits, the advance closes at the lower figure and catches up when they issue.
Foundation, framing, rough-ins, finishes: request each phase with photos, an inspection confirms it, the funds wire. Permits are required before the first hard-cost draw.
Sell the completed home, or lease it and refinance into a nationwide DSCR rental loan without starting the file over.
Built for builders.
Ground-up leverage is earned on ground-up projects. Completed builds in the last three years count in full, older ones at half, and two substantial expansion projects count as one build. Renovation experience alone does not qualify for construction, but construction experience qualifies you for our fix and flip program at the same tier.
The entry tier for construction. Budgets up to twice your largest verified project, and the highest exit-profit floor.
The same leverage with a lighter exit test, and more room on project size and scope.
The program maximums, the widest credit band, and the lightest exit test for a proven builder.
Entering a new market takes a general contractor agreement and a more experienced tier. Rural lots, large tracts, and speculative land are outside the program.
What fits the program.
- Infill development in urban and suburban areas: single lots and small developments of up to two properties
- 1-4 unit residential at workforce, median, and near-median values - the housing stock with the most buyers
- Purchases and delayed purchases of the lot; permitted and not-yet-permitted projects
- Plans and permits, or a stamped architect or engineer letter that matches the plans
- A licensed general contractor on the project, with the contract on file
- Closed in your LLC or corporation, with a personal guaranty from the principals
- Business purpose only - never a home you or your family will live in
The budget, released phase by phase.
The construction holdback is yours as the building goes up. Here is how it comes out.
Site work, foundation, framing, roof, mechanicals, finishes, with soft costs, demolition, and contingency each held to 10% of the budget and 25% together.
Soft costs can be released on an architect letter; hard costs wait for the building permit. A catch-up draw on the land follows the permits too.
Request each completed phase with dated photos. An inspection confirms the work; funds wire within a few business days.
Up to six months of interest can be financed into the loan and applied to the payments, so the carry does not come out of pocket during the build.
Scope revisions move money between divisions on approval; the total does not grow. Use the contingency line first.
The lot, the plans, the budget, the builds behind you.
Send the basics and we respond with terms and next steps. Every construction loan is sized on the actual project - no published rate sheet or rigid online guideline replaces a review of the numbers.
- Lot address, cost, and whether you already own it
- Plans, and permits or an architect letter
- Construction budget by division
- Completed value
- Ground-up projects you have completed in the last three years
- General contractor and license
- Borrowing entity and contact information
Ground-up, answered straight.
What is a ground-up construction loan?
Short-term financing for building a new home on a lot: an initial advance against the land, a construction holdback released in draws as the phases are completed and inspected, and an optional financed interest reserve. It is repaid when the finished property is sold or refinanced.
How much of the land and the build do you fund?
Up to 75% of the lesser of the land cost and the land value with permits in hand, 60% without permits with a catch-up draw when they issue, and 100% of the construction budget, capped at 85% of total cost (90% with a financed interest reserve) and 70% of the completed value.
Do I need permits to close?
No, but they change the numbers. Without permits the land advance starts at 60% and catches up to 75% when they are approved; the first hard-cost draw always waits for the building permit. A stamped architect or engineer letter that matches the plans lets soft costs move in the meantime.
Who qualifies for a construction loan?
Investors and builders with ground-up projects behind them, or substantial renovation experience in line with the build. Completed builds in the last three years count in full and older ones at half; two large expansion projects count as one build. A general contractor agreement and a more experienced tier are needed in a market you have not built in.
Can I finance the interest during construction?
Yes. Up to six months of interest can be rolled into the loan as a financed interest reserve and applied to the payments while the house goes up. It counts toward the loan and the total-cost cap.
What kinds of projects fit?
Infill lots in urban and suburban areas, single lots and small developments of up to two properties, building 1-4 unit homes at workforce, median, and near-median values. Rural lots, large tracts of land, and speculative land plays are outside the program.
What is the term?
Twelve months, interest only, with 18 to 24 months available by arrangement for larger builds. An extension of up to half the original term is available for a fee, subject to approval.
What is the exit?
A sale of the finished home, or a lease and a refinance into long-term financing. Every project is tested on the profit it shows at the completed value. If you plan to hold it, the refinance into a nationwide DSCR rental loan runs through the same team.
Where do you offer construction loans?
Nationwide, with a short list of excluded states. See the current map on the Where We Lend page. Availability remains subject to the property, underwriting, documentation, and applicable law.
Do you work with brokers on construction loans?
Yes. Brokers get fast scenario reviews and a straight answer on whether a project fits. Visit the Partners page to get started.
Break Ground.
Send the lot, the plans, the budget, and the builds behind you. We will respond with terms and next steps.