Ground Up Construction Loans for Investors
A ground up construction loan finances building a new home or rental from the dirt up, for an investor or builder who plans to sell it or rent it. I do these as business purpose investor loans, not for a home you'll live in. Not everyone will qualify.
What is a ground up construction loan?
It's a short term investor loan that covers building costs, paid out in draws as the work gets done. When the house is finished you sell it or refinance it into a long term rental loan like a DSCR loan.
Can I get a spec home construction loan?
Yes. A spec home is one you build with no buyer lined up. Lenders look at your plans, budget, timeline and experience, and at what the finished home should be worth.
Do I need building experience?
It helps, and some lenders ask for it. Tell me your track record and I'll match you with a lender whose rules fit.
Building a home to live in?
That's a different loan. See my one time close construction loans for Maine and Florida.
Frequently asked questions
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 loan funds paid out?
In draws. The lender releases money as each stage of the build is finished and inspected.
Can I refinance into a DSCR loan after building?
Yes. Many investors build, rent it out, and refinance into a DSCR loan.
Can I use this to build my own house?
No. For a home you'll live in, look at a one time close construction loan.