Ground-Up Construction Loans for Investors and Builders

Ground-Up Construction terms, upfront

These are program standards, straight from our terms sheet. Points and fees vary by deal; the leverage, loan sizes, and structure don't.

Business-purpose, non-owner-occupied only; entity borrowers (LLC or corporation) required; full recourse. Rates shown are the lowest offered and depend on borrower FICO, experience, and the deal. Points and fees vary. *Stabilized Bridge offers a no-DSCR option for properties listed for sale and a 1.10x exit-DSCR option for rent-ready properties. Not available in every state. Nothing here is a commitment to lend or an offer of specific terms; all loans subject to underwriting and approval.

Who this loan is for

• Spec home builders putting up houses to sell on finished lots or infill parcels.
• Build-to-rent investors who'd rather build the rental than buy it — and plan to refinance into a DSCR loan once it's leased.
• Experienced flippers moving up to new construction after a couple of builds under their belt.
• Small developers doing 1–4 unit residential projects that don't need — or don't fit — a bank construction loan.

It's not the right loan for a first-ever build, a house you'll live in, or a project without permits and plans in sight. Every construction loan is business-purpose, non-owner-occupied, made to an LLC or corporation, and full recourse.

What you'll need

Construction lenders look at more than the numbers — we're betting on the build getting finished. Plan to show us:

• Your track record: generally 1–2 builds. Addresses, photos, and what each sold or rented for.
• The land: the purchase contract, or proof you own it and what you owe on it.
• Plans and permits: where they stand. Approved plans move faster than "we're working on it."
• A detailed budget: line items for hard costs, soft costs, and contingency. Round numbers raise questions.
• The builder: who's doing the work, if it isn't you, and their experience.
• The exit: sell it, or lease it and refinance. Show the comps or the rents that back it up.
• Your equity and reserves: cash for your share of the project and enough to carry it through delays.

The full rundown is in our guide: what lenders need to see from a builder.

A worked example

Build budgets run long. Plan for it.

The construction deals that go sideways almost never fail on the spreadsheet. They fail in month nine, when lumber came in high, the inspector wanted changes, and the reserves are gone. That's why we care about contingency in the budget and cash in the bank as much as we care about the after-repair value.

If the project fits our lending box, we'll move it toward terms. If it's bigger, more complex, or outside 1–4 units, we'll put it in front of network lenders who do exactly that kind of build. Either way you'll get a straight answer about what it would take. For larger multifamily projects, see small multifamily & 5+ unit loans.