Construction loans for investors who build.
Finance the land and the build, with construction funds released through a draw schedule as the work is completed.
- Financing for ground-up projects and new construction
- Draws released as work is inspected and completed
- Experienced builders and investors with a plan
- Close in your LLC
How ground-up construction financing works
A ground-up construction loan covers the cost of building a new property. Instead of receiving all of the money at closing, construction funds are held and released in draws as each phase of the build is completed and inspected.
- Plan and budget. You submit plans, a construction budget and a timeline.
- Close. The loan closes and covers the land (if you are buying it) and the first funds.
- Build and draw. As work is completed and verified, further draws are released to you or your contractors.
- Exit. When the project is finished you sell, or refinance into long-term financing.
What we look at
- The budget, the plans and the value of the finished project
- Your experience building, or your builder’s track record
- Credit, liquidity and equity in the deal
- Permits, timeline and your exit plan
Documents you will typically need
- Plans and a detailed construction budget
- Contractor information and licenses
- ID, bank statements and entity documents
- Land purchase contract or proof of ownership
Common questions
How do construction draws work?
The construction budget is held by the lender and released in stages as each phase is completed and verified, which keeps contractors paid and the project on schedule.
Can the loan include the land?
Yes, a ground-up loan can cover the land purchase as well as the build, depending on the deal.
Do I need construction experience?
Experience helps. If you are newer to building, a track record from your general contractor can strengthen your file. Your loan officer will explain your options.
Planning a build? See your profit, cash required and break-even, with draws and interest on funds outstanding.
Ready to build?
Get a ballpark in about a minute, then exact numbers from a loan officer.
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