Ground-Up Construction Loans for Investors
Ground-up construction loans fund vertical construction on a vacant lot or teardown, typically over a 12–18 month term. Investor-focused programs are different from owner-occupied "construction-to-perm" loans — they’re short-term, interest-only, and underwrite to the completed appraised value, not your DTI.
Highlights
- •Up to 85% loan-to-cost (land + hard + soft)
- •Up to 70–75% loan-to-completed-value
- •12–18 month interest-only term
- •Land can roll into the loan if recently purchased
- •Builder/GC experience reviewed; DIY rarely accepted
Who it's for
Builders developing for sale or rent, BRRRR investors building rather than renovating, and infill developers tackling 2-10 unit projects.
Frequently asked questions
Can I include the land in the loan?
Yes if the land was acquired within the last 6–12 months. Older land is usually appraised separately and capped at as-is value plus construction budget for total project cost.
Do I need a licensed general contractor?
Most ground-up construction programs require a licensed GC. A small number of programs allow owner-builder if you have prior completed projects, but pricing is higher and LTV lower.
How do construction draws work?
A draw schedule is set at closing, usually tied to completed line items (foundation, framing, MEP rough-in, drywall, finish, certificate of occupancy). An inspector verifies each draw before funds release.
What happens at the end of the construction term?
Refinance into a long-term DSCR loan, sell the completed property, or extend the construction loan in some programs. Most lenders charge an extension fee.
Got a ground-up construction scenario?
Tell us the deal - we'll match you with the right lender and come back with current pricing.
By state
Related programs
Fix and Flip Loans (Hard Money & Bridge)
Short-term fix and flip loans for real estate investors. Up to 90% of purchase + 100% of rehab. ARV-based underwriting. Fast close.
Fix-to-Rent Loans for BRRRR Investors
Bundled short-term rehab loan plus pre-approved DSCR refinance for BRRRR investors. One lender, one underwriting pass, two closings.