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Ground up construction loans for first-time builders
Build a new home from an empty lot with one loan for the lot and the build. We fund 90% of the total cost, and you do not need to have built before.
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Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
What a ground up construction loan is
A ground up construction loan pays for building a new house from the dirt up: the lot, then the foundation, framing, roof, systems and finishes. It is short-term financing, repaid when the finished house is sold or refinanced.
Investors use the term ground up to separate new builds from fix and flip loans, which renovate a house that already exists.
How we size a ground up construction loan
We add the lot price and the build budget, then fund 90% of the total. The build money is held back and released in draws as the work is completed.
| 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 |
Our ground up construction financing terms
| Term | Ground Up Construction Lending |
|---|---|
| Share of lot and build funded | 90% |
| Your share | 10% |
| Building experience required | None |
| Build budget paid | In draws as work is completed |
| Loan purpose | Build to sell or rent (investment property) |
See ground up construction loans in Texas or learn how to get a construction loan with no experience.
Questions builders ask
Straight answers about ground up construction loans.
What is ground up construction?
Building a new structure from an empty lot, as opposed to renovating an existing one.
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%.
Do I need building experience?
No. We lend to first-time builders with no completed projects, as well as to experienced builders.
How is the build budget paid out?
In draws. As each stage of the build is completed, the work is inspected and that stage's money is released.
Can I use this to build a home I will live in?
No. These are business-purpose loans for homes built to sell or rent.
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