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How to get a construction loan with no experience
Getting a construction loan is harder for a first-time builder because most lenders want a track record. Here is what to prepare and how to find a lender that funds first builds.
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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.
How difficult is it to get a construction loan?
For an investor with no completed builds, it can be hard: many construction lenders require two or three finished projects. The way through is a lender that funds first-time builders, a realistic budget and plans that are ready to permit.
What lenders will ask for
Expect to show the lot, your plans and budget, an estimate of the finished sale price, your LLC documents, ID and credit, and cash for your share. The full list is on construction loan requirements.
Steps to get funded
- Get the lot under contract and your plans and budget together.
- Run your numbers in the construction loan calculator.
- Send the form and a loan officer follows up with your terms.
Questions builders ask
Straight answers about how to get a construction loan.
Can I get a construction loan with no experience?
Yes, from a lender that funds first-time builders. We lend with no completed builds required.
What are the requirements for a construction loan?
Typically the lot contract or deed, plans, a build budget, entity documents, ID, credit, cash for your share and insurance during the build.
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%.
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