Ground Up Construction FAQs

A ground-up construction loan is a short-term loan that provides funding to purchase the land (or refinance it) and cover the costs of building a new investment property from scratch — from the foundation to the final inspection.

Yes. We can finance:

• The purchase or refinance of the land

• The full construction budget ( in draws)
  As long as the deal fits within acceptable loan-to-cost (LTC) and after-completion value (ARV) guidelines, we’ll structure it to fit your needs.

We fund ground-up construction for:

• Single-family homes

• Small multifamily (2–4 units)

• Larger multifamily (up to 9 units)

• Spec homes and build-to-rent projects
  Let us know your end goal — resale, rental, or refinance — and we’ll guide you to the right structure.

Most ground-up construction loans require 20%–30% down based on the total project cost (land + construction).
You’ll also need to show proof of reserves and have funds available to get the project started until your first draw is released.

Construction funds are released in phases (draws) as work is completed and inspected. You’ll submit a draw request, and once verified, we release the next portion of funds. We’ll walk you through how to prep for smooth inspections and fast releases.

Here’s what we’ll typically ask for:

• Construction budget and scope of work

• Construction timeline or schedule

• Plans, permits, and specs (when available)

• Lot purchase contract (or proof of ownership if refinancing)

• Builder resume or GC info

• Entity docs if using an LLC

• Bank statements for down payment & reserves

• ID + insurance quote

We don’t need tax returns or W2s — just a solid plan and a viable deal.

No — you don’t need to be a licensed builder or contractor yourself, but you do need a solid team in place.

Most lenders (including us) require you to hire a licensed general contractor (GC) with experience completing similar projects. If you’ve done previous deals, that helps — but even first-time developers can qualify as long as:

• The numbers work

• The contractor is reputable and licensed

• The project plan and timeline are clear

We’re here to help you structure it right and avoid common mistakes — even if this is your first build.

Yes — this is one of the smartest long-term wealth strategies out there.

Many investors use a ground-up construction loan to build a rental property, then refinance into a DSCR loan once the build is complete and the property is rented. This allows you to:

• Pay off the short-term construction loan

• Lock in long-term financing

• Start generating passive cash flow

We’ll help you plan both phases — from blueprint to cash flow — and line up the refinance so there’s no downtime between finishing construction and pulling income.

We can typically close in 21-30 business days, depending on how quickly we receive your documents and how ready your project is.

Here’s what speeds things up:

• Your budget and scope of work are complete

• You’ve selected a licensed general contractor

• Plans, permits, and insurance quotes are ready or in progress

• Your entity docs and proof of funds are in hand

The more prepared you are, the faster we can move — and we’ll guide you every step of the way to avoid delays.