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Ground Up Construction Loans

Build Your Real Estate Vision From the Ground Up

 

When you are looking to build a brand-new residential property from scratch, standard financing won't cut it.

 

Our Ground Up Construction Loan Product provides real estate developers and investors with the capital needed to fund both the acquisition of land and the complete construction phase, ensuring a seamless build from breaking ground to completion.

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Ground Up Construction Program Highlights

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  • High Leverage Structure:

    • Up to 80% LTC (Loan-to-Cost) for the total project.

    • Up to 65% LTV (Loan-to-Value) based on the After-Repair Value (ARV) / Completed Value.

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  • ​Property Flexibility: Financing available for 1 to 10-unit residential new construction projects.

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  • Substantial Loan Amounts: Funding ranges from $250,000 to $3,000,000 to accommodate various build sizes.

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  • Modern Strategies Welcomed: Built properties can be utilized for traditional use, or modern investment strategies such as Short-Term Rentals (Airbnb/VRBO) and PadSplit models.

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  • Construction Timelines: Loan terms are available from 12 to 24 months to comfortably cover your building schedule.

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  • Interest-Only (IO) Payments: Enjoy interest-only payments, which are only charged on drawn construction funds, keeping your carrying costs low during the build phase.

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  • Competitive Origination Fees: Low upfront entry costs ranging from 0% to 2% depending on your specific loan structure.

Requirements to Qualify

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  • Minimum Credit Score: 680.

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  • Experience & Asset-Driven Underwriting: Approvals are primarily based on the property’s future value, your detailed construction budget/plans, and your building experience. Traditional bank hurdles like debt-to-income (DTI) ratios and personal employment verification are bypassed.

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  • Construction Draws: Funds are held in escrow and released in stages (draws) as construction milestones are verified by third-party inspections.

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Common Use Cases for Construction Financing

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  • Spec Homes: Build single-family or multi-unit homes from the ground up to sell for a profit upon completion.​

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  • Infill Development: Capitalize on vacant lots in high-demand urban or suburban markets.​

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  • Build-to-Rent: Construct single-family or multi-family properties to hold as long-term, high-yield rental assets.

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