Ground Up New Construction Loans are specialized financing options designed exclusively for constructing new buildings from the ground up. Unlike standard mortgages or renovation loans, these loans cater to developers and investors looking to finance real estate projects that begin with bare or undeveloped land and involve the entire construction of a new structure.
These loans are issued by banks, credit unions, and private lenders. The process starts with the borrower presenting a detailed project plan, budget, and timeline. The lender assesses the project's feasibility and potential return on investment before approving the loan.
Funding is not provided in a lump sum but disbursed in stages or "draws" as construction milestones are reached. This method ensures that funds are used appropriately and helps minimize the lender's risk. Interest is generally charged only on the portion of the loan disbursed, and full repayment is usually expected upon completion of the project or through refinancing with a more traditional mortgage solution.
Choosing a Ground Up New Construction Loan is about seeing potential where others see empty space. It's about envisioning a new structure that meets current market needs and anticipates future trends. With the right planning and execution, these loans can turn a vision into a lucrative reality, making them a powerful tool in the arsenal of any serious developer or investor.
Loan on new construction of a single property |
SFR (1-4 unit), condo, townhome |
Up to 85% of cost |
12 to 24 month term (via extensions) |
$250k – $5M+ |
Loan on new construction of multiple rental properties with term loan take out |
SFR or townhome only |
Up to 75% of cost on construction (65% LTV stabilized) |
24 month term on construction (3, 5, 7, or 10 year term on takeout) |
$3M – $30M+ |
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.