Ground-Up Construction Loans
Ground-Up Construction Loans for Real Estate Investors & Builders
Ground-up construction loans are designed for investors and developers building residential or commercial properties from the ground up. These loans provide structured funding throughout the construction process, helping you manage costs and keep your project on schedule.
At Puget Sound Funding Solutions, we connect builders and investors with experienced lenders offering flexible construction financing solutions across the United States.
What Is a Ground-Up Construction Loan?
A ground-up construction loan is a short- to mid-term loan used to finance the purchase of land and the construction of a new property. Funds are typically released in stages (draws) as construction milestones are completed.
How the Draw Process Works
- Loan is approved based on project plans and budget
- Initial funding may cover land acquisition
- Funds are released in draws as construction progresses
- Inspections may be required before each draw
- Final payout occurs upon project completion
Key Benefits
- Financing for both land purchase and construction
- Structured draw schedule to manage project costs
- Interest-only payments during construction (in many cases)
- Flexible loan structures based on project scope
- Designed for investors, builders, and developers
Typical Loan Terms (Example)
- Loan Type: Fix & Flip / Short-Term Investment Loan
- Term: 6–18 months
- Loan-to-Value (LTV): Up to 70% (purchase)
- After Repair Value (ARV): Up to 80% (project dependent)
- Rates: Typically 8%–12% APR (subject to market conditions)
- Points & Fees: 2–4 points + closing costs
The terms provided above are for informational purposes only and do not constitute a loan offer. Actual loan terms may vary based on borrower qualifications, experience, credit profile, property details, and market conditions. All loans are subject to lender approval.
What Types of Properties Qualify?
- Single-family new construction
- Multi-family developments
- Spec home builds
- Small to mid-size residential developments
Who Qualifies?
Ground-up construction loans are typically best suited for experienced investors and builders, but newer developers may qualify with strong project plans.
- Detailed construction plans and budget
- Builder or investor experience
- Financial strength and liquidity
- Clear exit strategy (sale or refinance)
Example Project Scenario
- Land Purchase: $150,000
- Construction Budget: $350,000
- Total Project Cost: $500,000
- Estimated Completed Value: $700,000+
In this example, a lender may fund a percentage of the total project cost, with funds released in stages as construction milestones are completed.
Why Work With Us?
We help investors and builders navigate complex construction financing by connecting them with lenders who understand development projects. Our goal is to simplify the process and ensure your project is funded efficiently.
- Access to experienced construction lenders
- Support with structuring your project financing
- Fast and transparent communication
- Investor and builder-focused approach
Get Started
Planning your next build? Submit your loan inquiry today and explore construction financing options tailored to your project.