REAL ESTATE INVESTOR FINANCING
Ground-Up Construction
Build faster or build with more leverage.
Ground-up construction financing funds land acquisition and vertical construction through a draw schedule. Build with maximum leverage (up to 95% LTC with 100% eligible construction financing) or break ground fast with an express close and no appraisal. Two approaches shown side-by-side below.
Available approaches
Two ways to structure this deal
These are separate programs with separate parameters — never merged into one table. Both feed into the same application; the selected approach is captured when you apply.
Prioritizes maximum construction leverage (up to 95% LTC).
- Maximum Leverage
- Up to 95% LTC
- Construction Financing
- Up to 100% of eligible construction budget
- Loan Amount
- Up to $3 million
- Term
- 12–18 months, interest only
- Appraisal
- Subject to program and transaction
- Closing
- Typical core closing 2–3 weeks
- Draws
- 24-hour digital inspections
- First-Time Builder
- Available with an experienced GC
- 95% LTC
- 100% eligible construction
- 24-hour digital draw inspections
- Up to $3M
- 2–3 week normal closing
- First-time builder program
Prioritizes speed — no appraisal and express closing options as fast as 48 hours.
- Maximum Leverage
- Up to 90% LTC
- Construction Financing
- Up to 100% of eligible construction where program allows
- Completed-Value Benchmark
- Up to 75% completed-value / ARV
- Loan Amount
- Approximately $75K–$5M+
- Term
- 9–24 months
- Credit
- Approximately 680 minimum
- Appraisal
- No traditional appraisal required on express program
- Closing
- As fast as 48 hours on prepared qualifying transactions
- Draws
- Approximately 48-hour draw process
- 90% LTC
- 100% eligible construction where program allows
- No appraisal
- As fast as 48-hour express close
- Up to $5M+
- 9–24 month term
Typical Market
What investors commonly see in the market
Typical market ranges for ground-up construction financing across independent lenders. These are broad market reference points, not averages and not a guarantee.
- Construction Leverage
- Typical market range ~85–95% LTC
- Construction Funding
- Up to 100% of eligible construction on qualifying programs
- Completed-Value Cap
- Roughly 70–80% of completed value as a common cap
- Term
- Approximately 9–24 month build terms
- Draws
- Milestone / inspection-based construction draws
- Credit
- Varies widely by program and lender
The Green Fire Strategies programs shown below are separate from these market ranges — compare the two directly.
Who
Who this product is for
Ground-Up Construction is for investors and builders developing new residential investment properties — single-family, 2–4 unit, infill, spec, PUD, and condominium construction. It fits developers who have land (or a site identified), completed plans, permits in hand or underway, and a qualified builder, and who need acquisition plus vertical construction capital in one structure with a refinance or sale exit after completion.
What
What the financing does
A construction loan funds land acquisition plus vertical construction through milestone-based draws. As each phase of the build is completed and inspected, capital is released for the next phase. 100% eligible construction financing is distinct from 100% total project financing — the overall loan remains subject to loan-to-cost and completed-value limits, so the borrower may still contribute toward the land, closing costs, reserves, or other expenses even when the construction budget itself is fully financed.
When
When an investor uses it
Use Ground-Up Construction when you are building from the ground up and need acquisition plus construction capital in one structure, with a refinance or sale exit after completion. It fits the moment between permits and certificate of occupancy — the window where you have an approved plan and a builder but need the capital to acquire the land and fund the vertical build through completion.
Why
Why use this instead of traditional financing
Construction financing differs from a normal mortgage in ways that matter for a ground-up build. It funds land plus vertical construction through draws based on completed milestones, rather than disbursing a lump sum at closing. Sizing is built around total project cost (land plus construction) and completed value rather than a percentage of the land purchase alone. And it accommodates the build timeline — months of construction with inspections and draws — that a conventional mortgage is simply not designed for. For a property that does not exist yet, that structural fit makes construction financing the right tool.
Use cases
Typical use cases
- Single-family ground-up builds
- 2–4 unit construction
- Infill and spec construction
- PUD and condominium construction
- Builds where the construction budget is large relative to the land cost
Process
How the loan works
- 1
Assemble the project
The investor secures land (or identifies it), completes plans, obtains permits, and engages a qualified builder before applying.
- 2
Submit the deal
Land cost or value, construction budget, completed value, plans, permits, and contractor are submitted for review.
- 3
Budget and capacity review
The lender reviews the construction budget realism, plans, builder capacity, borrower experience, and liquidity and reserves.
- 4
Close and fund land
The construction loan closes and land acquisition is funded if the land is not already owned. Construction capital is held back for draws.
- 5
Construction draws
Construction capital is released through milestone-based draws as work is completed and inspected — 24-hour digital inspections on the core program.
- 6
Complete the build
The investor completes construction, drawing against the reserved budget by milestone through to certificate of occupancy.
- 7
Exit
The investor exits by selling the completed property or refinancing into long-term financing, repaying the loan from sale or refinance proceeds.
Underwriting
What lenders generally evaluate
A construction lender evaluates the project and the builder as much as the borrower. They review the construction budget and its realism, the plans and permits, the builder's capacity and licensing, the borrower's experience (prior builds), liquidity and reserves, and the completed value that will support the exit. Construction risk and timeline risk are weighted heavily — the lender wants confidence the build will be completed on budget and on time.
Exit
Exit strategies
- Sell the completed property and repay from sale proceeds
- Refinance into long-term DSCR rental financing after completion and stabilization
- Refinance into a Build-to-Rent construction-to-permanent structure if held as a rental
Considerations
Important considerations
- Requires completed plans, permits, and a qualified contractor
- Construction risk and timeline risk — delays and overruns increase carrying cost
- Reserves and experience may be required
- Actual leverage and terms depend on the transaction, borrower, property, and capital source
- 100% eligible construction financing is distinct from 100% total project financing
Build toward the full capital requirement
Your first loan funds the property. Gap capital can fund the rest. Qualifying borrowers may be able to combine primary hard-money financing with eligible gap capital to address the purchase or down payment, closing costs, reserves, rehab, and other eligible deal costs — building toward 100% of the capital the deal requires when the combined structure qualifies.
- Primary Financing
- The hard-money loan — acquisition plus eligible rehab or construction, sized around total project cost and after-repair value.
- Gap Capital
- Eligible supplemental capital that may help cover the down payment, closing costs, reserves, rehab float, earnest money, and other eligible shortfalls the primary loan does not cover.
- Full-Capital Structure
- The combined stack. Potentially cover up to the full capital requirement when the combined structure qualifies and the primary lender's source-of-funds rules are satisfied.
100% financing is not guaranteed. The primary lender's source-of-funds, equity, reserve, and seasoning rules still control whether borrowed gap capital counts toward required liquidity. Qualify from a position of strength first, then preserve working capital when the structure permits.
Ready to apply for Ground-Up Construction?
One focused application. No cost, no obligation, and no credit pull to request your terms.
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