New Construction Loans

Ground-Up Construction Financing — Build It, Fund It, Sell It

Residential construction loans up to 90% LTC. Interest-only during the build. From spec homes to multi-unit developments.

Land, permits, and construction in one loan
Draw schedule tied to build milestones
Refinance into DSCR on completion

$10M

Max Loan

90%

Up to LTC

12–24

Month Terms

5.0 ★★★★★

Trust Index Verified

Simple Process

How It Works

From application to your first draw, here is what to expect.

Submit Your Project

Tell us about your build: location, budget, timeline, and experience. No hard credit pull. We review your project and match you to the right lender.

Get Your Term Sheet

We present your best options with full transparency: LTC, rate, term, draw schedule, and closing costs. You pick the program that fits your project.

Close and Start Building

Sign your docs, close in 2 to 4 weeks, and receive your first draw. Funds release as construction milestones are completed and inspected.

Term Sheet Ready

Approved Loan Amount

$425,000

New Construction - Spec Build

LTC 85%

Interest Rate 9.5%

Term 18 months

Monthly Interest $3,365

Accept Term Sheet

Construction Loan Programs

Ground-Up Financing Built for Builders

We work with lenders who specialize in residential construction. You get the right terms for your project scope and experience level.

Loan Amount

$50K – $10M

Finance your full project cost including land, permits, materials, and labor.

Term Length

12 – 24 Months

Short-term financing designed to cover your full build timeline plus a buffer for delays.

Leverage

Up to 90% LTC

Experienced builders with strong credit can finance the majority of the project.

We Know Construction Lending

Construction loans are not one-size-fits-all. Draw schedules, LTC limits, experience requirements, and state restrictions vary by lender. We have built relationships with lenders who specialize in ground-up residential projects. You submit one application. We match you to the right program based on your project scope, experience, and timeline.

What Is a New Construction Loan?

Short-Term Financing for Ground-Up Builds

A new construction loan funds the cost of building a residential property from scratch on vacant or cleared land. This includes land acquisition, permits, materials, labor, and related costs.

Unlike a traditional mortgage, construction loans are short-term (12 to 24 months) and funds are disbursed in stages called draws. As construction milestones are completed and inspected, the next draw is released. You only pay interest on the amount that has been disbursed.

These are asset-based loans. Lenders underwrite primarily on the project's after-completion value (ARV), not your personal income. Once the build is complete, you either sell the property and pay off the loan, or refinance into a long-term loan like a DSCR for rental income.

Key Features

Interest-only during construction. No principal payments until the project is complete and sold or refinanced.

Up to 90% loan-to-cost. Experienced builders with strong credit can finance the majority of the project.

Land equity counts. If you already own the lot, it can serve as your down payment, reducing or eliminating cash out of pocket.

Draw schedule disbursements. Funds released at each milestone (foundation, framing, rough-in, finishes, completion) after inspection.

1 to 4 unit residential. Single-family homes, duplexes, triplexes, and fourplexes. Larger projects require commercial lending.

Plan Your Build

Estimate Your Construction Loan

Use the calculator to estimate your loan amount and monthly interest, then see if you meet the baseline qualifications.

Construction Loan Calculator

Estimate based on project cost, ARV, rate, and term.

Total Project Cost $500,000

Completed Value (ARV) $750,000

Interest Rate 11%

Loan Term 18 Months

Monthly Interest (at full draw) $3,896

Estimated Loan Amount $425,000

Equity Required $75,000

ARV Margin $250,000

Who Qualifies?

Baseline requirements across our construction lender network.

Credit Score

600+

Experience

Construction or Flip Experience Preferred

Project Documentation

Budget, Plans, Permits Required

Equity / Down Payment

10–25% of Project Cost

These are minimums. 680+ credit, 3+ completed projects, and land already owned gets you the best terms: up to 90% LTC and rates as low as 7%.

First-time builders with strong credit and a solid project plan can still qualify. We will match you to lenders that fit your experience level.

Client Success Stories

Spec Build

Sold for $185K Over Total Project Cost

"We had the lot and the plans. We just needed the right lender to make it happen."

An experienced flipper was ready to move into ground-up development. They owned a lot in a high-demand neighborhood and had a full construction budget ready. We matched them to a lender at 85% LTC with a 9% rate. The build took 14 months. They sold the finished home for $185K more than the total project cost.

Build-to-Rent

Construction Loan to DSCR Refinance in 16 Months

"The plan was always to hold it. We just needed the right financing to get it built."

A real estate investor wanted to build a duplex on a lot they already owned, then hold it as a rental. Land equity covered the down payment. We secured a construction loan at 85% LTC. Once the build was complete and tenants were in place, we refinanced them into a DSCR loan with cash flow from day one.

Multi-Unit

Fourplex Built and Fully Leased in Under 18 Months

"Four units, four tenants, one loan to build it all."

A developer with 5 completed flips wanted to scale into multi-unit construction. We matched them to a lender who financed the full fourplex build at 90% LTC. Construction was completed on schedule, all four units were leased within 60 days of completion, and they refinanced into a long-term DSCR loan.

Compare Your Options

Which Real Estate Financing Fits?

Not sure if a construction loan is the right move? Here is how it compares to other real estate financing we offer.

	New Construction	Fix and Flip	DSCR Loan	SBA 504
Amount	$50K – $10M	$50K – $5M	$75K – $5M	$500K – $5M
Term	12 – 24 months	6 – 18 months	30 years	10 – 25 years
Structure	Interest-only, draw schedule	Interest-only, lump sum	P&I, fully amortized	P&I, fully amortized
Credit Score	600+	600+	620+	680+
Property Type	Vacant land / ground-up build	Existing property needing rehab	Completed, rent-producing	Owner-occupied commercial
Best For	Spec builds, build-to-rent, infill development	Renovating and reselling existing properties	Long-term rental income properties	Owner-occupied commercial real estate
		Learn More	Learn More	Learn More

Common Questions

New Construction Loan FAQs

Straight answers about ground-up financing.

How do construction loan draws work?+

Funds are not disbursed all at once. Instead, you receive draws (disbursements) as construction milestones are completed. A typical draw schedule has 4 to 6 stages: foundation, framing, rough-in, finishes, and completion. After each stage is completed and inspected, the next draw is released. This protects both the lender and borrower.

Do I need to own the land already?+

No. Many programs can finance both the land acquisition and the construction. If you already own the land, it can count as your equity contribution, which reduces or eliminates the need for a cash down payment. Land equity is one of the most effective ways to reduce out-of-pocket costs.

What happens when construction is complete?+

You have two options. If you built to sell, you sell the property and pay off the construction loan from the proceeds. If you built to rent, you refinance into a long-term loan (like a DSCR loan) that pays off the construction loan. Either way, the construction loan is designed to be temporary.

Can I act as my own general contractor?+

Some lenders allow owner-builders, but most prefer or require a licensed general contractor. Having a GC with a track record typically strengthens your application and can improve your terms. We will match you with programs that fit your project structure.

How much experience do I need?+

Experience requirements vary by lender. Some programs accept first-time builders with strong credit and a solid project plan. Others require 3 or more completed projects. Having fix-and-flip experience (even if not ground-up) helps demonstrate competency. We will find the right lender for your experience level.

How long does the construction loan last?+

Most construction loans have 12 to 24 month terms, which is designed to cover the full build timeline plus a buffer for delays. Extensions are typically available for a fee if the project runs over. We help you set a realistic timeline upfront to minimize extension costs.

Is a Construction Loan Right for Your Project?

Great Fit If...

You have a lot and want to build a residential property (1 to 4 units)
You have construction or fix-and-flip experience
You have a detailed budget, plans, and permits (or are close to pulling them)
You want interest-only payments during the build with no principal due until sale or refinance

We Also Help With...

Fix-and-flip loans for renovating existing properties
DSCR loans for completed rental properties (the natural next step after your build)
SBA 504 for owner-occupied commercial construction projects
Business loans and lines of credit for operational needs during your build