Home / Construction loan requirements
Construction loan requirements: the full checklist
Everything a construction lender will ask for, in one list. Have these ready and your loan moves faster.
Get my termsNew construction loansSee your terms in seconds
Your loan amount shows as you type. Send the deal and a loan officer follows up.
Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
The checklist
- The lot: a purchase contract, or proof you own it
- Plans: house plans for the home you will build
- Budget: a line-item build budget
- Sale price estimate: what similar new homes nearby have sold for
- Your LLC: operating agreement, certificate of formation, good standing and EIN
- You: ID and credit for each guarantor
- Cash: your 10% of lot and build, plus closing costs and reserves
- Insurance: builder's risk and liability coverage during the build
Experience requirement
Many lenders require two or three finished builds. We do not require any; first-time builders are welcome. Read how to get a construction loan with no experience.
Down payment requirement
You bring 10% of the lot price plus the build budget.
| Deal | Amount |
|---|---|
| Lot price | $60,000 |
| Build budget | $260,000 |
| Total cost | $320,000 |
| We fund 90% | $288,000 |
| Sale price when finished | $430,000 |
| You bring (10%) | $32,000 |
Questions builders ask
Straight answers about construction loan requirements.
What are the requirements for a construction loan?
The lot contract or deed, plans, a build budget, a sale price estimate, LLC documents, ID and credit, cash for your 10% and insurance during the build.
How much experience do I need?
None. We lend to first-time builders.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
More from Ground Up Construction Lending
Loans, tools and guides for investors building new homes.