Ground Up Construction Loans for Investors and Spec Builders
By Travis Penny, mortgage broker ·
Last updated October 14, 2026
If you want the program details in one place, start with my ground up construction loans page. Here's how it works and who it fits.
What is a ground up construction loan?
It's a short term investor loan that funds the build in draws as each stage is done and inspected. When the house is finished, you sell it or refinance into a long term rental loan.
Can I get a spec home construction loan?
Yes. A spec home has no buyer lined up yet. The lender looks at your plans, budget, timeline, experience and the expected finished value.
Do I need experience?
It helps, and some lenders ask for it. Tell me your track record and I'll match the file to a lender whose rules fit.
What happens when the build is done?
Plenty of investors rent it out and refinance into a DSCR loan, which qualifies on the rent instead of your income.
Where to go from here
My ground up construction loans page has the full rundown, and the qualify quiz tells you in two minutes if it's worth a call.
FAQ
Who offers ground up construction loans for investors?
I do, as a broker working with lenders that fund investor builds. Not everyone will qualify.
How are construction funds paid out?
In draws, released as each stage is finished and inspected.
Can I refinance into a DSCR loan after building?
Yes, that's a common exit.
Can I use this to build my own home?
No. For a home you'll live in, look at my one time close construction loans.
Ready for the next step? Take my 2 minute qualify quiz, run the numbers on my DSCR calculator, send me your scenario through the contact form, or apply now. You can also text me at (207) 615-7770 or email Travis@travis.mortgage.
Travis Penny