01
Milestone-based draws
Loan proceeds are disbursed in stages for verified construction milestones such as foundation, framing, and drywall.
Construction financing
Ground Up Construction Loans
Flexible short-term financing for builders and developers constructing residential properties from scratch, with scheduled draws tied to project milestones and underwriting built around the future as-completed value.
Program highlights
Capital from drafting board to certificate of occupancy.
Our Ground Up Construction program is designed for modern real estate developers and investors building single-family homes, townhomes, small multifamily properties, and residential communities.
| Program feature | Detail |
|---|---|
| Maximum leverage | Up to 85% LTC |
| Loan amounts | $150K - $5M+ |
| Payment structure | Interest only |
| Loan terms | 12 - 24 month terms |
| Closing speed | Close in 21 days or less |
| Eligible property types | SFR, townhomes, 2-4 units, multifamily residential, and SFR or townhome communities |
How it works
Construction financing that follows the build.
Funds are released in phases as milestones are completed and verified, helping you manage cash flow while the project moves forward.
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Interest-only payments
Interest-only payments help protect cash flow while the property is under construction and generating no income.
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Interest reserves
An interest reserve can be built into the upfront loan budget to cover monthly interest during the build.
Eligibility
What developers should be prepared to show.
Every project is reviewed on its own merits. The strongest submissions typically include a clear plan, experienced project team, realistic budget, and sufficient liquidity.
✓Single-purpose business entity such as an LLC
✓Proven builder or sponsor experience
✓Strong liquidity for equity, reserves, and overruns
✓Qualified general contractor with a fixed-price contract
✓Architectural plans, permits, and detailed budget
✓Eligible residential property type and feasible exit
Qualification steps
From project submission to draw management.
Submit the project
Share the location, project narrative, initial cost estimates, plans, and development timeline.
Review the team and budget
Provide contractor credentials, permits, specifications, line-item budget, and construction contract.
Appraisal and feasibility
Independent review evaluates land value, as-completed value, budget feasibility, and project metrics.
Underwriting approval
The team reviews liquidity, track record, LTC and LTV metrics, and the proposed exit strategy.
Close and fund
Eligible projects may close in 21 days or less, with an initial advance for approved costs and reserves.
Manage construction draws
Submit draw requests as milestones are reached and funds are released after inspection verification.
Why ground up construction
Keep capital working across the project.
High-leverage parameters, interest-only terms, and milestone-based funding can help developers preserve liquidity for unexpected delays or future opportunities while executing the current build.
Common project types
Single-family spec homes, townhomes, 2-4 unit properties, multifamily residential, and SFR or townhome communities.
Typical exit paths
Sell the completed property or refinance into a long-term permanent mortgage after receiving the certificate of occupancy.
85%Maximum LTC
$5M+Maximum loan size
12-24Month terms
21dPotential closing speed
Frequently asked questions
Ground Up Construction answers.
What is the difference between a construction loan and a traditional mortgage?
A construction loan releases funds in stages based on physical progress, while a traditional mortgage generally releases funds at closing for an existing property.
How does the draw process work?
Draw requests are submitted at milestones, an inspector verifies progress, and funds are released to the borrower or contractor.
What happens when construction is finished?
Once the project is complete and receives a certificate of occupancy, the loan is typically paid off through a sale or refinance into permanent financing.
Ready to explore Ground Up Construction financing?
Send the project basics and our team will respond within 24 hours.