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Program 03
Ground-Up Construction in Grand Junction
Ground-up construction loans for builders developing land in Grand Junction.
USA Mortgage funds ground-up construction in Grand Junction up to 70% LTV and 85% of cost, with draws that keep pace with your build schedule. Land inside city limits is tight, and impact fees on a single-family build are due in full at Planning Clearance rather than at completion, so plan your interest reserve accordingly. Outside a water district's service area, your build depends on a tap, an exempt well, or an augmentation plan before it depends on a permit. This is business-purpose financing only, subject to underwriting.
70%
max LTV
85%
of cost
Most states
funding
$5M
max loan
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
We finance both the land and the vertical construction, with a draw schedule built around your timeline. Experienced builders can access higher leverage on cost.
Who it's for
Spec home builders
Developers and operators
Lot purchase or teardown
Build-to-rent strategies
Typical terms
Loan amountUp to $5M
LeverageUp to 70% LTV / 85% LTC
Term12 to 24 months
DrawsPer build schedule
RateFrom 10.00%*
UseSpec or build-to-rent
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Ground-Up Construction in Grand Junction, answered.
Does my Grand Junction lot already have the water it needs to build?
Only if it sits inside Ute Water Conservancy District or a municipal service area. Outside one, a new well or a subdivision's water supply is a junior right in a basin where the Grand Valley's senior agricultural rights, some dating to 1898, can call for water from roughly July through October. A new non-exempt use generally needs an augmentation plan, either a decreed plan through Water Court Division 5 in Glenwood Springs or a State Engineer substitute water supply plan, replacing the depletions the new well causes.
Is there a way to build in Mesa County without a tap or a water court case?
Yes, if the parcel is large enough and the use stays small. An exempt well is capped at fifteen gallons per minute, serves up to three single-family dwellings for ordinary household use plus fire protection, and irrigates no more than one acre. It qualifies for the no-injury presumption where it will be the only well on a tract of thirty-five acres or more serving a single residence. Denser development or more than an acre of irrigation moves the project into augmentation-plan territory.
What does Ute Water charge to tap a new build in the Grand Valley?
The 5/8 inch meter tap fee is $8,500, up from $8,000 effective January 2025. The residential minimum monthly rate is $27 for the first 3,000 gallons, and Ute Water has announced drought rates applying to bills beginning July 2026, citing severe drought across the Grand Valley. Budget the tap fee as a project cost, not a closing-table afterthought.
When does Grand Junction actually collect its impact fees on a new home?
Up front, at Planning Clearance, not at certificate of occupancy. For single-family, townhome and condominium units, the city calculates and collects impact fees in full before construction starts, with no deferral to completion. Multifamily and non-residential projects work differently: the fee locks at the amount in effect when a complete application is submitted and stays valid as long as Planning Clearance issues within two years, which is a hedge a multifamily borrower can underwrite to.
Is it easier to find a buildable lot inside Grand Junction city limits or outside them?
Land inside city limits is the binding constraint, not demand. As of March 2026 more building permits were being issued outside Grand Junction city limits than inside, a shift attributed to limited developable land in the city, with growth pushing toward Whitewater, Palisade and north Grand Junction. A county lot can widen your site options, but it also moves the water-supply question in the first two FAQs above to the front of your due diligence.
FAQ
Ground-Up Construction questions, answered.
How much of my construction project will you finance?
We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.
Will you finance the land or lot purchase?
Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.
How does the draw schedule work?
Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.
What are the rates and terms on a ground-up loan?
Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.
Do you lend to first-time builders?
We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.
What do you need to quote a construction loan?
The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.
Resources
Guides for Ground-Up Construction
Fix and Flip · 6 min read
Fix and Flip Loan Requirements: What You Need to Get Funded
Read the guide Fix and Flip · 5 min read
What Is ARV (After-Repair Value) and How Do You Calculate It?
Read the guide Construction · 5 min read
How Ground-Up Construction Loans Work
Read the guide Getting Funded · 4 min read
LTV vs LTC: What's the Difference?
Read the guide More in Grand Junction
Other programs in Grand Junction
Fix and FlipUp to 90% / 100% rehabRental / DSCR30-yr fixed, DSCR from 0.75CRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
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