New Construction Loans for Investors & Builders

Construction loans serve spec builders working infill lots and subdivisions; investors doing teardown-rebuilds where the structure is worth less than the dirt; build-to-rent investors constructing what they will hold (with a DSCR refinance as the natural exit); developers of small multifamily and townhome projects; and experienced flippers stepping up from heavy rehab to ground-up. The shared profile: a shovel-ready or near-ready project, a credible budget, and a competent GC — yours or you.

Leverage measured against project cost, not just land value, which shrinks the cash a build ties up; draw funding that matches capital deployment to construction progress, with interest only on funds drawn; speed to close that lets you take down lots and permits opportunistically; underwriting by lenders who actually read plans and budgets rather than fitting builds into mortgage boxes; experience-based terms that improve project over project; and both exits kept open — sell as spec, or refinance into DSCR debt and hold as build-to-rent.

Acquiring or paying off lots and teardowns; funding full vertical construction budgets; covering soft costs — permits, plans, utilities, impact fees — on program-eligible deals; carrying the project through completion via interest-only structure; and bridging the finished build to its exit, whether retail sale or lease-up and refinance.

The project qualifies first: viable lot with permits or a clear path to them, a complete and realistic budget with contingency, plans, comps supporting the completed value, and margin that survives overruns. Builder experience is the biggest single lever — completed builds unlock the top leverage tiers — but first-build investors pair with an experienced GC and qualify at more conservative terms. Liquidity for the equity portion, closing costs, and reserves; flexible credit review; entity borrowers standard. Business-purpose only. Programs vary by state and lender. Not all applicants qualify.

Terms run 12 to 24 months, interest-only, typically on drawn balances, with the loan repaid at exit: sale of the completed property or refinance into permanent financing (a DSCR loan for build-to-rent — also available through us — keeping the whole build-to-hold cycle in one place). Draws release on inspection at each completed stage; extensions are commonly available when weather, permits, or subs slow a build. Pricing reflects construction risk — above bridge, in line with heavy-rehab products — and improves markedly with builder track record. Full term sheet before commitment.

Bank construction lending exists but is built for a different customer: consumer construction-to-perm products for future owner-occupants, or commercial facilities for established developers with audited financials and deposit relationships. The small builder doing three spec homes a year falls in the gap — too entrepreneurial for the consumer product, too small for the commercial desk, and always too slow-moving a process for competitively-priced lots. Private construction lending fills exactly that gap with project-based underwriting at deal speed.