Question 1

How much of my construction project will you finance?

Accepted Answer

We fund new construction up to 70% of value and up to 85% of total cost (land plus build), nationwide, 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.

Question 2

Will you finance the land or lot purchase?

Accepted Answer

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.

Question 3

How does the draw schedule work?

Accepted Answer

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.

Question 4

What are the rates and terms on a ground-up loan?

Accepted Answer

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.

Question 5

Do you lend to first-time builders?

Accepted Answer

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.

Question 6

What do you need to quote a construction loan?

Accepted Answer

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.

Ground-Up Construction

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