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Residential Ground Up Financing

1-4 Unit New Construction
Loans.

Financing to build a 1 to 4 unit home or small rental from the ground up. Typically up to 90% of cost.

Get a QuoteSee typical terms
Program Snapshot
$250K
Min loan
$15M
Max loan
90%
Max LTC
24 mo
Max term
Residential ground up only (no commercial construction)
Land acquisition can be rolled in at closing
Program Overview

Funding to build the house

This loan funds ground-up residential construction: a single family home, 2 to 4 units, or a small build-to-rent project. It can cover land, soft costs, and construction through certificate of occupancy.

Loans are interest only during the build. We look at loan to cost and the value after construction. We close in the project entity, fund land at closing, and reimburse construction against an approved budget.

We do not fund commercial construction. For 5+ unit apartment construction, you would look at a different type of loan.

Construction Funding
Draw Mechanics
Submit your construction budget at closing. We disburse against percent complete inspections every two weeks. Most projects run 18 to 24 disbursements. Inspections are third party or in house depending on loan size.
Typical terms

What you can typically borrow

These are typical ranges, not a quote. Your rate and loan amount depend on the plans, budget, and your experience building.

Loan Amount
$250,000 to $15,000,000
Max LTC
90%Combined land and vertical
Max LTV
70% of after construction valueACV based at permanent refinance
Loan Term
12 to 24 months6 month extension available
Amortization
Interest onlyNo payments on undisbursed balance
Land Funding
Up to 75% of land costLand roll in allowed at closing
Minimum FICO
680Top tier pricing at 720 plus
Experience Tier
1 plus completed ground upFirst time builders considered case by case
Eligible Entities
LLC, LP, S Corp, C CorpPersonal guaranty required
Prepay Penalty
NonePay off at certificate of occupancy or after
Note: These are typical terms. Your quote can change by state, property type, occupancy, and credit. Cash out limits, seasoning, and reserves vary.
Building from the ground up?
Share your plans and budget for construction terms and draw structure.
Get a Quote
Property types

Property types we like

Single Family Spec

Spec built single family homes for resale or rental conversion.

Single Family Infill

Teardown and rebuild on urban infill lots in established neighborhoods.

2 to 4 Unit New Build

Duplex, triplex, and quad ground up construction in residential zones.

Build to Rent

Small BTR communities up to 10 units intended to refinance into DSCR or portfolio loans.

Townhome and Rowhome

Attached residential product up to 8 attached units per loan.

Modular and Prefab

Site built and modular residential construction with proper foundation work.

Not eligible: Commercial ground up (office, retail, industrial), large multifamily new construction (5 plus units), mixed use ground up, mobile homes on leased land, raw land speculation.
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Who this is for

Built for Residential Builders

From single spec builds to small build to rent communities, the program scales with your volume.

1

Spec builders

Build to sell. We pair construction debt with sales velocity assumptions in underwriting.

2

Build to rent

Construct and stabilize for portfolio rental. Refinance into DSCR or multifamily at completion.

3

Custom home builders

Build for a contracted buyer. Reduced leverage required given fixed exit pricing.

4

Teardown and rebuild

Acquire tired infill, demo, and rebuild. We can roll the land into the construction loan.

5

Repeat builder relationships

Pipeline pricing for builders averaging 5 plus ground up projects per year.

How It Closes

Typical Construction Timeline: 21 to 30 Business Days

01
Week 1

Budget and Plans

Submit construction budget, plans, and builder resume. Term sheet within 48 hours.

02
Week 2

Appraisal + Diligence

Order ACV appraisal, review builder agreement, title, insurance, and entity.

03
Week 3

Underwriting

Final budget review, contingency analysis, conditions cleared.

04
Week 4

Close + Initial Draw

Land funded at closing if applicable. Construction draws begin per schedule.

Have a project ready to quote?
Tell us about the lot and build plan and we will map out next steps.
Get a Quote
Residential Ground Up Construction Questions

Frequently Asked

Do you lend on commercial ground up construction?+
No. Our construction program is residential only. That includes single family, 2 to 4 unit, townhome, and small build to rent. Commercial development requires specialty construction debt we do not offer.
Can land acquisition be rolled into the loan?+
Yes. We fund up to 75% of land cost at closing when land is acquired simultaneously with construction loan funding. Existing land owned outright counts as equity in the LTC calc.
How are draws disbursed?+
Every two weeks, against percent complete inspections. Smaller projects use lender ordered inspections; loans above $1.5M typically use a third party construction inspector.
What experience do I need?+
Standard program requires one completed ground up project. First time builders are considered case by case at reduced leverage with a strong builder team and contingency reserve.
Can I extend the construction period?+
Yes. Most loans include a 6 month extension at closing for a 1% fee. Weather, permit, and supply delays are common; underwriting accounts for realistic timelines.
What happens when construction is complete?+
Refinance into permanent debt: DSCR for held rentals, conventional for primary residences sold to retail buyers, or portfolio terms for build to rent operators. We can quote the permanent loan up front.
Do you require fixed price builder contracts?+
Preferred but not required. Time and materials contracts accepted with monthly draw caps and detailed line item tracking.
Related Programs

Other Programs

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5+ Units

Multifamily

5+ unit residential DSCR

Long Term

DSCR Rental

1 to 4 unit long term rental

Speed

Bridge

Fast close transition capital

Get Started

Have a Build in the Works?

Send us plans and budget and we will often send a quote in as soon as an hour.