Ground-Up Construction Loans

Ground-up construction loans provide financing to build a property from the ground up, with funds released in stages as construction progresses.

Features

• Used to finance projects on vacant land prepared for construction

• Funds are disbursed through scheduled draw payments

• Requires approved plans, permits, and a construction budget

• Often short-term loans that convert to permanent financing

• Interest is typically paid only on funds drawn

• Borrowers need to be experienced and use a licensed contractor

• Inspections are required before each draw is released

• Can be used for residential, multifamily, or commercial projects

• Loan terms are typically up to 24 months

• Designed to align financing with the construction timeline