Construction Loans for Builders & Investors
From ground-up new construction to fix & flip renovations—get the financing you need to build, renovate, and profit.
Construction Financing Solutions
Whether you're building from the ground up or renovating for resale, we have a program designed for your project.
Ground-Up Construction
New builds, spec homes, custom construction, and ADUs. Finance land acquisition and full construction costs.
- Up to 90% LTC
- Up to 75% of ARV
- 12-24 month terms
Fix & Flip
Renovate existing properties for resale. Fast funding for experienced flippers with streamlined underwriting.
- Up to 90% of purchase
- 100% of rehab costs
- 6-18 month terms
Bridge Loans
Short-term financing for acquisitions, refinances, or to bridge the gap until permanent financing or sale.
- Up to 80% LTV
- Interest-only payments
- Close in 10-14 days
Ground-Up Construction Loans
Build from scratch with financing designed for experienced builders and investors. Whether you're constructing a single-family spec home, building an ADU, or developing a small multi-unit project, our ground-up programs provide the capital you need at every stage.
Ground-Up New Construction Programs
| Feature | Standard | Experienced Builder |
|---|---|---|
| Max LTC (Loan-to-Cost) | 85% | 90% |
| Max LTV (After Repair Value) | 70% | 75% |
| Loan Amount | $150K - $3M | $150K - $5M+ |
| Term | 12-18 months | 12-24 months |
| Interest Rate | 10.5% - 12% | 9.5% - 11% |
| Experience Required | 1+ completed projects | 3+ completed in 36 months |
| Min Credit Score | 660 | 680 |
| Interest Reserve | Required | Required |
Eligible Property Types
- • Single-family residences (SFR)
- • Owner-occupied primary residences*
- • Townhomes & condos
- • 2-4 unit multifamily
- • ADUs / Guest houses
- • Spec homes (build-to-sell)
- • Build-to-rent (BTR) projects
- • Infill development
*Owner-occupied primary residence construction requires use of a licensed general contractor.
Not Eligible
- • Raw land / land development only
- • Horizontal development
- • Commercial special-use (churches, etc.)
- • Projects without permits in hand
- • Owner-builder (no licensed GC)
How Construction Draws Work
Funds are released in stages as construction milestones are completed and verified by inspection. You only pay interest on funds drawn—not the full loan amount.
Fix & Flip Loans
Purchase distressed properties, renovate them, and sell for profit—with financing that covers both acquisition and rehab costs. Our fix & flip programs are designed for speed and flexibility.
Fix & Flip Programs
| Feature | Light Rehab | Heavy Rehab |
|---|---|---|
| Max Purchase Financing | 90% | 85% |
| Rehab Financing | 100% | 100% |
| Max ARV (After Repair Value) | 75% | 70% |
| Loan Amount | $75K - $2M | $100K - $3M |
| Term | 6-12 months | 12-18 months |
| Interest Rate | 10% - 12% | 10.5% - 12.5% |
| Experience Required | None for light | 1+ completed project |
| Min Credit Score | 620 | 660 |
| Rehab Budget Threshold | Up to $75K | $75K+ |
What Counts as "Experience"?
To qualify for experienced investor pricing, you typically need 1-3 completed projects within the last 36 months. "Completed" means sold or refinanced into permanent financing. For first-time flippers with strong credit (680+) and liquidity, we have programs available at slightly higher rates.
Rehab & Renovation Calculator
Run the numbers on your next fix & flip. Enter your purchase price, rehab budget, and expected ARV to see your potential equity position, LTV ratios, and monthly payments.
Property Values
Renovation Budget
Lenders typically require 10-20% contingency for unexpected costs
Loan Terms
FHA 203k: 3.5% | Conventional: 3-5% | VA/USDA: 0%
Project Summary
Total Project Cost
$336,250
Loan Amount
$319,438
Add ~$300-500/mo for taxes, insurance & PMI/MI
Equity Analysis: Build Wealth Through Renovation
LTV on Cost
95.0%
Max varies by program
LTV on ARV
85.2%
<80% = No PMI potential
Instant Equity
$55,563
14.8% equity position
ROI on Down Payment
+230%
Equity gained vs cash in
💰 By investing $16,813 down and completing $86,250 in renovations, you'll create $55,563 in instant equity—a 230% return on your down payment!
Project Cost Breakdown
Bridge Loans
Short-term financing for quick acquisitions, cash-out refinances, or to "bridge" the gap until you sell or secure permanent financing. Ideal for time-sensitive deals that won't wait for traditional lending.
Bridge Loan Terms
- Max LTV75-80%
- Loan Amount$100K - $5M+
- Term6-24 months
- Interest Rate9.5% - 12%
- Payment TypeInterest-only
- Closing Speed10-14 days
Common Bridge Loan Uses
- Acquire property before existing one sells
- Cash-out refinance for investment capital
- Quick close on auction or foreclosure property
- Stabilize property before DSCR or conventional refi
- Partner buyout or entity restructuring
Understanding LTC vs. LTV
Construction lenders evaluate deals using two key metrics: Loan-to-Cost (LTC) and Loan-to-Value (LTV). Understanding both is critical because lenders typically cap your loan at the more conservative of the two calculations.
Loan-to-Cost (LTC)
LTC = Loan Amount ÷ Total Project Cost
Total Project Cost includes land/acquisition + hard costs (construction) + soft costs (permits, fees, interest reserve).
Example: $400K loan ÷ $500K total cost = 80% LTC
Loan-to-Value (LTV / ARV)
LTV = Loan Amount ÷ After Repair Value
ARV is the appraised market value of the property after construction or renovation is complete.
Example: $400K loan ÷ $600K ARV = 67% LTV
Why This Matters
If your project has 85% LTC but only 70% LTV, the lender will cap the loan at 70% of ARV—whichever is lower protects the lender's downside. In strong markets where values exceed costs significantly, LTV often becomes the binding constraint. In tight-margin markets, LTC typically governs.
Real-World Examples
These case studies illustrate how construction financing works in practice. Names and identifying details have been changed, but the numbers reflect actual deal structures.
Case Study: Primary Residence New Construction in Austin, TX
First-Time Builder • Owner-Occupied • 12-Month Term
Borrower Profile
A young couple with no prior construction experience purchased a lot in a developing Austin suburb. They hired a licensed general contractor and wanted to build their forever home—a 2,800 sq ft single-family residence they would occupy upon completion.
- Combined Household Income:$185,000/year
- Credit Score (Primary):745
- Construction Experience:None
- Contractor:Licensed GC (required)
Project Costs
- Lot (already owned):$125,000
- Hard Costs (Construction):$385,000
- Soft Costs (permits, fees):$28,000
- Interest Reserve:$22,000
- Total Project Cost:$560,000
Construction Loan Terms
- Appraised Value (completed):$715,000
- Construction Loan Amount:$435,000
- LTC:78%
- LTV (of completed value):61%
- Interest Rate:7.875%
- Term:12 months
Permanent Loan (Conversion)
- Loan Type:30-Year Fixed
- Final Loan Amount:$500,000
- Interest Rate:6.625%
- Monthly P&I:$3,202
- Down Payment Equivalent:30%
- PMI Required:No
Outcome
Construction completed in 11 months with one minor delay due to permit inspections. The couple used a construction-to-permanent loan, which converted automatically to their 30-year mortgage after the Certificate of Occupancy was issued—saving them a second set of closing costs. Their total cash outlay was approximately $125,000 (the lot they already owned plus closing costs and reserves). They now live in a custom home worth $715,000 with a $500,000 mortgage and $215,000 in instant equity.
Key Takeaway for First-Time Builders
Owner-occupied construction loans typically require a licensed general contractor, detailed plans and specs, and strong personal credit. While leverage is more conservative than investor programs (usually 75-80% LTC), the rates are lower and the loan converts to traditional permanent financing. No prior construction experience is required as long as you're working with a qualified contractor.
Case Study: Fix & Flip in Dallas, TX
First-Time Flipper • 9-Month Term
Project Overview
A first-time investor with strong W-2 income (FICO 720) purchased a dated 1970s ranch home in a transitioning neighborhood. Scope: full kitchen/bath remodel, new HVAC, flooring, and curb appeal upgrades.
- Purchase Price:$215,000
- Rehab Budget:$62,000
- Closing Costs & Carry:$18,000
- Total Investment:$295,000
Financing Structure
- Appraised ARV:$365,000
- Purchase Loan (85%):$182,750
- Rehab Loan (100%):$62,000
- Total Loan:$244,750
- LTV (of ARV):67%
- Interest Rate:11.5%
Outcome
Renovation completed in 4 months; the property listed and sold within 45 days for $358,000. The investor brought approximately $50,000 cash to closing (down payment + reserves) and walked away with a net profit of roughly $42,000 after all costs. With this track record documented, she now qualifies for "experienced investor" pricing on her next deal.
Case Study: Bridge Loan for Portfolio Acquisition in Los Angeles, CA
Experienced Investor • 12-Month Term
Situation
An investor identified a 4-unit multifamily property being sold off-market at a discount. The seller required a 21-day close—far too fast for conventional financing. The investor owned two other rentals free and clear.
- Purchase Price:$1,150,000
- As-Is Appraised Value:$1,280,000
- Monthly Gross Rent:$8,200
- DSCR at Stabilization:1.18
Financing Structure
- Bridge Loan Amount:$920,000
- LTV (of As-Is):72%
- Interest Rate:10.75%
- Payment Type:Interest-Only
- Time to Close:14 days
- Borrower Equity:$230,000
Outcome
The bridge loan closed in 14 days, allowing the investor to capture the off-market opportunity. After stabilizing occupancy and documenting 6 months of rental income, the investor refinanced into a DSCR loan at 7.5% with a 30-year term. The property now cash-flows approximately $1,400/month after debt service, and the investor retained over $200K in equity.
Every project is different. Contact us to discuss how we can structure financing for your specific situation.
Discuss Your ProjectWhy Builders Choose Us
20+ years of mortgage experience, with deep expertise in investment property financing.
Fast, Reliable Closings
We understand construction timelines. Our draw process is streamlined, and we've built relationships with lenders who execute efficiently.
Competitive Leverage
Up to 90% LTC for experienced builders means you keep more capital working across multiple projects.
Full Lifecycle Support
From construction to stabilization—we can help you transition to DSCR financing for rentals or conventional refinancing.
19-State Licensing
Licensed to originate in California, Texas, Florida, Arizona, Colorado, and 14 other states. Your investment, our expertise—wherever you build.
Emmett Clark
Licensed Mortgage Loan Officer · NMLS #233747 · 20+ Years Experience
This page has been reviewed for accuracy by Emmett Clark, a licensed mortgage professional with extensive experience in construction and investment property financing. Licensed in 18 states. Last updated: January 2026.
Ready to Finance Your Next Project?
Whether it's ground-up new construction, a fix & flip renovation, or a bridge loan to capture a time-sensitive opportunity—let's structure the right financing for your deal.