Land + build budget
Ground-up financing typically covers the lot (or existing land value) plus the construction budget — hard costs, permits, and the line items in your build plan. The loan is sized to the project, not a generic purchase mortgage.
New Build Financing
Ground-Up Construction Loans
A ground-up construction loan finances a new residential build from the lot through completion — land, hard costs, and the draw schedule that keeps the project moving. It's built for investors who want to control the build, not wait on conventional construction timelines.
Whether you're starting from a vacant lot or tearing down to rebuild, ground-up financing is structured around the budget, the build plan, and a clear exit — sell, rent, or refinance when the certificate of occupancy is in hand.
The Basics
How Ground-Up Construction Financing Works
A clear look at the structure — so you know what you're applying for before you break ground.
Draws as the build progresses
Construction funds are released in draws as milestones are completed and verified — not funded all at once on day one. That keeps capital aligned with actual progress on site.
Plans, budget, and specs matter
Underwriting centers on your construction budget, architectural plans, and the finished value of the completed home. A realistic scope and timeline are as important as the numbers on the purchase side.
Short-term, exit-focused terms
Construction loans are short-term by design — built around the build schedule and your exit. When the project finishes, you typically sell, rent, or refinance into long-term financing.
Before You Apply
What You'll Need to Get Started
Have these basics ready and we can move quickly. You don't need every document finalized — but a realistic budget and build plan go a long way toward a clear answer.
Still modeling the deal? Use theFix & Flip Profit CalculatororMax Offer Price Calculatorin ourInvestor Tools.
- The property address and lot details
- Land purchase price or current land value
- Full construction budget and scope of work
- Architectural plans and build specifications
- Estimated completed value (ARV) of the finished home
- Your exit strategy — sell, rent, or refinance
- Target timeline and any contract dates in place
The Advantage
Why Investors Choose Hard Money for Ground-Up Builds
Ground-up construction is capital-intensive and time-sensitive — the financing needs to match the pace of the build.
Speed to break ground
Conventional construction lenders move slowly. Hard money ground-up financing is built for investors who need to close on the lot and start building — not sit in a months-long approval queue.
Deal-based underwriting
Approval centers on the land, the build budget, and the completed value — not a W-2 stack. The project economics drive the decision.
Built for investor builds
Spec builds, infill lots, tear-down-and-rebuild — ground-up loans are structured for investment exits, not owner-occupied custom homes with bank-style documentation.
Direct lender support
Draw requests, inspections, and timeline questions go to the same team funding the deal — fewer handoffs when something changes on site.
FAQ
Ground-Up Construction Loan Questions
Straight answers on experience, draws, property types, and what happens at completion.
Do I need prior construction experience to qualify?
Experience helps with leverage and pricing, but it isn't always a hard requirement. What matters most is a realistic budget, a credible build plan, and a clear exit. First-time builders may see different terms than experienced developers.
How do construction draws work?
Funds are released in stages as work is completed and verified — typically after inspection of each draw milestone. You request a draw, document the progress, and receive the next tranche of construction capital. You generally don't pay interest on funds you haven't drawn yet.
Can I finance just the build if I already own the lot?
Yes. If you already own the land, the loan can be structured around the land equity plus the construction budget. Share your lot details and we'll walk through how the numbers work.
What property types qualify?
Single-family residential and small multi-unit investment builds are the focus. Certain asset types — like mobile homes, raw land without a build plan, or mixed-use — may not fit. We'll confirm eligibility on your specific address before you invest time in the file.
How fast can I close?
Timelines depend on how complete your budget, plans, and documentation are. Ground-up files often take longer than a simple fix and flip purchase because of the build scope — but hard money still moves faster than most conventional construction lenders. Share your deadline and we'll set expectations upfront.
What happens when the build is finished?
Most investors sell the completed home, rent it and refinance into DSCR financing, or hold per their original business plan. The construction loan is short-term — your exit strategy should be clear before you break ground.
Want more investor education?Visit the Learning Centeror compare withFix & Flip Loansif you're renovating an existing property instead of building new.
Ready to Fund Your Build?
Send the lot details, budget, and build plan — we'll tell you what it takes to finance, usually within one to two business days.