Loan program

Ground-Up Construction

Land + vertical financing with milestone-based draws.

Rate range

10.00% – 12.00%

Max LTV / LTC

85% LTC, 70% ARV

Term

12 – 24 months, interest-only on drawn balance

Single-close construction loan for spec builds and build-to-rent, up to 85% LTC.

Best for

Spec single-family and small subdivisions
Build-to-rent SFR portfolios
Infill townhome and duplex projects

Eligibility

680+ FICO
Verifiable construction experience (personal or GC)
Shovel-ready — approved permits or clear path
15–20% cash post-close for carry and cost overruns

Documents needed

Land contract or existing title
Approved plans + permits
GC bid + line-item budget
Insurance binder (builders risk + GL)
Comps supporting ARV

Pros

Interest only on drawn balance
Single close — no re-underwriting
Rehab/vertical funded in draws
Take-out via DSCR (rental) or sale

Considerations

Slower to close (30–45 days)
Draw process demands strong project management
Extension fees if you miss C/O window
Working capital required between draws

Construction financing is bridge lending applied to a longer, more granular timeline. The lender releases funds only as milestones complete — foundation, framing, MEP, finishes, final inspection.

Success hinges on permit readiness, contractor reliability, and a locked take-out. Investors who treat construction like a project (with Gantt charts and weekly draw discipline) close on time. Everyone else fights extension fees.

Common questions

Do you fund land purchase?

Yes — land + vertical in a single close, or land loan first if permits aren't ready.

How many draws?

Typically 5–7 milestone-based draws, plus a final at C/O.

First-time builder?

Possible with an experienced GC of record, tighter LTC (75%), and additional reserves.

Ranges shown are educational. Actual pricing and terms depend on your credit, the property, and current market conditions. Nothing on this page is an offer of credit.