Construction loans built for investors and builders. High leverage, low risk loans, flexible terms.

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New Construction Loans

One Loan. Land + Construction. ARV-Based Approval.

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New Construction Loans are short-term financing solutions tailored for real estate investors and builders developing a property from the ground up. These loans typically cover the purchase of land (if needed) and fund the costs of construction throughout various project phases. Rather than basing approval on current property value, construction loans are structured around the future value of the completed project. During construction, borrowers usually make interest-only payments, helping manage cash flow while the build is in progress.

What is a New Construction Loan?

Once construction is complete, borrowers have the option to refinance into a long-term loan—such as a DSCR loan—or sell the finished property for profit. This type of financing is ideal for investors looking to maximize returns through ground-up developments or major rehabs. New construction loans offer flexibility and scalability, making them a powerful tool for investors ready to take on larger, value-driven projects.

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Up to 24 Months

Maximum Repayment Term

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$75k-$100M+

Available to Qualified Borrowers

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Up to 95% LTC

Loan Amount Available

Benefits of New Construction Loans

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Interest Only Payments

Only pay interest during the build phase—keep monthly costs low while your property takes shape.

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Land & Construction Covered

Finance both the lot purchase and construction costs in one loan—no need for separate funding sources.

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Based on ARV

Loans are underwritten using the After-Repair Value (ARV) of the completed project, allowing for higher leverage and more capital upfront.

How do New Construction Loans Work?

New Construction Loans can be used to purchase land or applied to a build project where the borrower already owns the land and uses it as equity. Approval is based on the projected After Repair Value (ARV) of the completed property, as well as your construction plans and budget. Funds are released in stages through a draw schedule tied to specific milestones, which are verified throughout the build.

During construction, borrowers make interest-only payments on the funds that have been drawn, which helps keep monthly costs manageable. Once the project is finished, the loan is typically repaid by selling the property or refinancing into a long-term loan, such as a DSCR loan.

Qualifications to get started.

Down Payment

As low as 0$

Credit Score

620+ FICO

Loan Amount

$75,000 Minimum

Experience

Preferred but not Required

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Apply for a New Construction Loan in Minutes

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Complete Your Application

Start with our fast, online form—designed to take just minutes.

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Receive a Personalized Offer

One of our funding experts will send you a tailored term sheet to review.

Accept and Secure Your Terms

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Review your offer, sign electronically, and lock in your funding terms.

Receive Your Funds & Close

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Close the deal and receive your funds!

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 FAQs

  • A New Construction Loan is short-term financing used to fund the ground-up development of residential or commercial properties. It covers the cost of land, labor, and materials throughout the building process.

  • Yes. The loan can be used to purchase land as part of the project. If you already own the land, its value can be used as equity toward your down payment or project funding.

  • Instead of receiving the full loan amount upfront, funds are released in draws—payments issued at key phases of construction (foundation, framing, roofing, etc.). Each draw is approved after inspection or submission of completed work documentation.

  • No. Most construction loans are interest-only during the build, meaning you only pay interest on the funds drawn. This keeps your monthly payments lower until the project is complete.

  • Yes. Most lenders allow you to structure the loan in an LLC or business entity, which is ideal for liability protection and long-term portfolio management.


  • Terms range from 6 to 24 months, with extension options available. Most loans are structured to align with the expected construction timeline.