A ground-up construction loan finances your build from the ground up — land, materials, and labor — with leverage that rewards your track record.
Ground-up construction financing for real estate investors and builders — covering land, site work, and vertical construction through completion. It’s cost-based (loan-to-cost), structured around the project and your experience rather than your personal income, for everything from a single spec home to 5+ unit residential and mixed-use. This is business-purpose financing for non-owner-occupied investment property.
What you can finance
- Up to ~86% of project cost (LTC), experience-tiered — more leverage for proven builders.
- Loan amounts from ~$200K to $10M+.
- Terms of 6–24 months, interest-only during construction.
- 1–4 unit residential, 5+ unit multifamily, and mixed-use — plus mid-construction and horizontal/land development on select programs.
- Construction-to-permanent options that roll into long-term DSCR financing at completion — one path from dirt to rented.
- First-time and lower-experience builders eligible on select programs (at reduced leverage).
- Short-term-rental exit strategies supported on select programs.
How ground-up construction financing works
- Structured to cost. We size the loan against total project cost — land plus hard and soft construction costs — not just the finished value.
- Funded in draws. Money is released in stages as construction reaches each milestone, verified by inspection, and you pay interest only on what’s been drawn.
- Exit on completion. Sell the finished property, or roll into a long-term DSCR loan and hold it as a rental — including a single-close construction-to-permanent path on select programs.
Leverage that rewards experience
Leverage is tiered to your track record. Proven builders with completed projects qualify for the highest loan-to-cost; newer investors are still eligible on select programs at more conservative leverage. The deal itself matters as much as the résumé — a strong budget, a realistic timeline, and a clear exit carry weight.
Who it’s for
Spec builders and developers, build-to-rent and BRRRR investors, and owners adding units or building multifamily and mixed-use from the ground up. If it’s a residential or small-commercial investment build, there’s a good chance we can structure it.
Building or major-renovating a home you’ll live in? That’s a separate consumer product — see Construction Loans (One-Time Close). Buying and rehabbing an existing property to flip? See Fix & Flip.
Frequently asked questions
What is a ground-up construction loan?
It’s short-term financing that funds building a property from the ground up — land, site work, and vertical construction — for real estate investors. The loan is sized to your total project cost, released in draws as construction progresses, and repaid when you sell or refinance the finished property.
How much of the cost can I finance?
Up to roughly 86% of total project cost (loan-to-cost) on select programs, tiered to your building experience. Proven builders reach the highest leverage; newer investors qualify at more conservative levels. Loan amounts run from about $200K to $10M+.
Do I need construction experience to qualify?
Not necessarily. Experienced builders earn the most leverage, but first-time and lower-experience investors are eligible on select programs at reduced loan-to-cost, provided the budget, timeline, and exit are sound.
What’s the difference between loan-to-cost and loan-to-value?
Loan-to-cost (LTC) measures the loan against what the project costs to build — land plus construction. Loan-to-value (or after-repair value) measures it against the finished property’s worth. Ground-up loans are structured primarily to cost, with the completed value as a secondary guardrail.
Can I roll a construction loan into permanent financing?
Yes. On select programs you can move from construction directly into a long-term DSCR rental loan at completion — including a single-close construction-to-permanent path — so you can build and hold without a second full qualification.
What property types can I build?
Single-family and 1–4 unit residential, 5+ unit multifamily, and mixed-use, plus mid-construction and horizontal/land development on select programs — all for investment (non-owner-occupied) use.