Ground-Up Construction Loans | Mortgage Houz
Ground-Up Construction Financing

Build It.
Finance It. Fund It Fast.

From vacant lot to finished structure — MortgageHouz connects builders, developers, and investors with ground-up construction capital designed for speed, flexibility, and maximum leverage.

Get My Quote Now → See How It Works
90%
Max LTC
75%
Max LTV / LTARV
680+
Min Credit Score
$5M+
Max Loan Size
Program Snapshot
  • ✦Loan Type: Short-term construction — 12 to 24 months
  • ✦Leverage: Up to 90% LTC · Up to 75% LTARV
  • ✦Interest: Interest-only on drawn funds — not full commitment
  • ✦Draws: Milestone-based, funded within 24–72 hours
  • ✦Entities: LLC, LP, and Corporation closings accepted
  • ✦Income Docs: Not required — experience-based underwriting available
  • ✦Land Equity: Counts toward down payment / borrower contribution
  • ✦Exit: Sell, refinance to DSCR, or convert to permanent — all options available
  • ✦Footprint: Available in 48 states + DC
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No obligation · Response within 24 hrs

🏗️ New Construction · Spec · Custom Homes
🗺️ Available in 48 States + DC
⚡ Fast Draws — As Quick as 24 Hours
🏢 LLC & Entity Closings Welcome
🔒 No Personal Income Docs Required
What Is Ground-Up Financing?

From Bare Land
to Finished Asset

A ground-up construction loan funds the entire process of building a new structure from scratch — from land acquisition through final completion. Unlike a traditional mortgage that finances an existing property, construction loans finance a property that does not yet exist, releasing capital in stages as work is verified.

During construction you pay interest only on the amount that has been drawn — not the full loan commitment. This keeps your carrying costs low during early phases and scales as the project advances. Once complete, your exit is a sale, refinance into a DSCR rental loan, or a one-time-close permanent conversion.

MortgageHouz structures ground-up financing for investors and builders of all experience levels — from a first spec home to large scattered-site subdivision programs — with access to the nation's most competitive construction lending programs.

Key Metrics at a Glance
Loan-to-Cost (LTC) Up to 90% of total project cost
Loan-to-After Repair Value (LTARV) Up to 75% of completed value
Loan Term 12 – 24 months
Typical Interest Rate Range From ~8.875% (varies by profile)
Origination Fees 1–2% of loan amount
Draw Inspection Fee $150 – $250 per draw
Interest Reserve Often built into loan
Prepayment Penalty None on most programs
Min Credit Score 680+
Closing Timeline 15 – 30 days
Financing Programs

5 Powerful Programs.
One Expert Team.

We match your project to the right construction lending program — whether you're building a single-family spec home, a multifamily complex, or a full subdivision.

Most Popular
🏠
Spec Home Builder
Designed for experienced builders constructing single-family homes for resale in residential markets.
  • ▸Up to 90% LTC / 75% LTARV
  • ▸Min. 680 credit score
  • ▸2+ completed builds OR 1 build + 1 major reno ($200K+)
  • ▸Loan amounts up to $5M+
  • ▸Terms: 12–18 months with extension options
  • ▸LLC / Entity closing required
  • ▸No tax returns or personal income required
  • ▸Interest-only on drawn funds
🏘️
Multifamily & Townhome
Purpose-built for 2–10 unit residential properties, townhome communities, and infill multifamily.
  • ▸Up to 85% LTC on total project cost
  • ▸Up to 75% of as-completed value
  • ▸Min. 680 credit score
  • ▸Flexible for lease-up and sell-out exit strategies
  • ▸Terms: 18–24 months
  • ▸Milestone draw schedule with fast 24–72 hr funding
  • ▸Entity vesting required
  • ▸Build-to-Rent conversion option available
🏗️
Custom Home — One-Time Close
Single-close loan that finances land acquisition and construction, then converts to permanent financing automatically.
  • ▸Combines land purchase + build into one loan
  • ▸Construction-to-permanent in a single close
  • ▸Up to 80% LTC during construction phase
  • ▸Interest-only during build; converts on CO
  • ▸Min. 680 credit score
  • ▸Save on second set of closing costs
  • ▸Great for owner-builders and custom build clients
  • ▸12–18 month construction window
🔄
Build-to-Rent (B2R)
A powerful single-close product that transitions from interest-only construction to a 30-year DSCR rental loan at completion.
  • ▸Construction phase: interest-only on drawn funds
  • ▸Converts to 30-year or 40-year DSCR at CO
  • ▸No tax returns or DTI calculation at refinance
  • ▸Up to 75% LTV on permanent DSCR loan
  • ▸Min. 680 credit score
  • ▸SFR, 2–4 unit, and small multifamily eligible
  • ▸LLC closing accepted
  • ▸No prepayment penalty on construction phase
Advanced Program
🌆
Subdivision &
Scattered-Site Program
For experienced developers building multiple properties under one program — from scattered-site portfolios to platted subdivisions and infill communities.
  • ▸Multiple simultaneous builds under one credit facility
  • ▸Cross-collateralization available to increase leverage
  • ▸Land equity reimbursement at closing
  • ▸Lot purchase reimbursement up to 65% of land value
Max LTC
90%
Max Loan Size
$5M+
Min Credit Score
680
Experience Req.
3+ Completed
Projects
Term
18–24 Mo
Entities
LLC / LP / Corp
Draw Speed
24–72 Hrs
Income Docs
Not Required
The Process

5 Steps From Blueprint
to Funded

1
Submit Your Quote Request
Share basic project details — property type, location, loan amount, and your experience level. Takes 2 minutes.
2
Pre-Qual Within 24 Hrs
Our team reviews your project and connects you with the best-fit program. Most pre-qualifications are returned same or next business day.
3
Submit Full File
Approved construction plans, project budget, contractor agreements, and permits. We walk you through exactly what's needed.
4
Close in 15–30 Days
Loan closes in your LLC or entity. Interest reserve is often built in. Land equity is credited toward your borrower contribution.
5
Build & Draw Funds
Funds release within 24–72 hours of each milestone inspection. Pay interest only on what's been drawn. Crews stay paid, projects stay on schedule.
Draw Schedule

How Funds Are Released

Construction funds are disbursed in stages tied to verified milestones — protecting both the lender and your project timeline. Each draw is inspected and funded within 24–72 hours of approval.

Draw Phase Milestone / Trigger Typical % of Budget Notes
Draw 1 — Initial Closing / Land acquisition & site prep 5–10% Lot purchase reimbursement available up to 65% of land value
Draw 2 — Foundation Foundation poured & inspected 10–15% Third-party inspection required; interest begins accruing on drawn amount
Draw 3 — Framing Framing complete, roof sheathed 20–25% Structural milestone — largest single draw for most projects
Draw 4 — Mechanicals HVAC, plumbing, electrical rough-in 15–20% Required inspections: mechanical, plumbing, electrical rough-in
Draw 5 — Drywall & Interior Drywall hung and taped; insulation complete 10–15% Interior work progressing; exterior nearly complete
Draw 6 — Finishes Flooring, cabinets, fixtures, trim 15–20% Near-complete milestone; landscaping and drives may be included
Draw 7 — Final Certificate of Occupancy issued 10–15% Final disbursement triggers permanent conversion or sale payoff

Draw fees typically $150–$250 per inspection. Schedules are customized per project. Contingency fund of 10–20% of total budget recommended.

Qualification Guidelines

Do You Qualify?

Our programs are designed for real estate investors, builders, and developers — not owner-occupants. Here's what lenders typically look for.

✅ Borrower Requirements
  • ·Minimum 680 credit score (some programs allow 660 with compensating factors)
  • ·Experience evaluated — 2 to 3 completed ground-up builds preferred
  • ·First-time builders may qualify with strong general contractor & detailed plans
  • ·Must close in LLC, LP, or Corporation — no personal vesting
  • ·No personal income documentation required on most programs
  • ·Prior project profitability or income trends may be reviewed informally
🏗️ Project Requirements
  • ·Approved construction plans, permits, and project budget required at submission
  • ·Licensed general contractor with signed contractor agreement
  • ·Shovel-ready projects get fastest approvals and maximum LTC
  • ·Contingency fund of 10–20% of total hard costs is strongly recommended
  • ·Third-party appraisal (as-completed value) required
  • ·Builder's risk insurance required prior to first draw
📋 What You'll Need to Provide
  • ·Construction plans and specifications
  • ·Full project budget (hard costs, soft costs, contingency)
  • ·Contractor agreements and builder resume / track record
  • ·Copy of lot purchase contract or current deed
  • ·Entity documents (LLC operating agreement, etc.)
  • ·Permits (if available — some programs allow pre-permit submission)
🔁 Exit Strategy Options
  • ·Sell — Pay off construction loan from sale proceeds at closing
  • ·DSCR Refinance — Refinance into 30- or 40-year rental loan based on property cash flow, no income docs
  • ·Construction-to-Perm — Single-close option converts automatically at CO
  • ·Build-to-Rent (B2R) — Interest-only through construction, then long-term DSCR loan
  • ·Loan extensions available (typically 1–2% of loan amount)
Eligible Property Types

What We Finance

Ground-up construction loans for investment and builder-owned properties nationwide.

🏠
Single-Family Spec
Standalone homes in residential areas — built to sell or rent
🏘️
2–4 Unit
Duplex, triplex, and quadplex new construction for investors
🏢
Multifamily 5–10 Unit
Small apartment buildings, lease-up or build-to-rent strategies
🏙️
Townhome Projects
Attached and detached townhome communities and infill developments
🗺️
Subdivision / Platted Land
Scattered-site or platted residential subdivision programs
🏗️
Mixed-Use (Residential Majority)
Buildings with residential above retail — majority residential use required
🌳
Custom Homes
Custom home builds where borrower does not intend to occupy
🔄
Build-to-Rent Portfolios
Single or multiple SFRs built for long-term rental income
Frequently Asked Questions

Ground-Up Financing
— Your Questions Answered

Loan-to-Cost (LTC) measures the loan against what you spend to build — land, hard costs, soft costs, and contingency. LTV (or LTARV — Loan-to-After-Repair-Value) measures the loan against what the finished property is appraised at when complete. Most programs cap at 90% LTC AND 75% LTARV — whichever is more conservative governs your maximum loan amount.
Yes. Most programs allow land equity to count toward your borrower contribution. If you own the lot free and clear, some programs will finance up to 100% of the construction cost as long as the total loan stays within LTC and LTARV limits. Land equity is one of the most valuable tools available to ground-up builders.
No traditional income documentation is required on most of our ground-up programs. Underwriting is primarily based on your experience, the project strength, and the as-completed value. In some cases, recent income trends or prior project profitability may be reviewed informally, but W-2s and tax returns are not standard requirements.
Some programs are open to less-experienced builders, particularly if you have a licensed and experienced general contractor with a strong track record, a detailed project plan, and a larger equity contribution. Having an experienced GC on your team can substitute for personal build history on certain programs. Tell us your situation and we'll find the best fit.
Once a draw request is submitted with the required documentation and inspection is completed, funds are typically disbursed within 24 to 72 hours on most programs. Some lenders offer same-day funding for eligible draws. Fast draws keep your crews paid and your projects on schedule.
Extensions are available on virtually all programs, typically at 1–2% of the loan amount for each extension period. Weather delays, permitting issues, and contractor delays are common — lenders build this flexibility in. It's also smart to scope your timeline conservatively when choosing a 12, 18, or 24 month term.
Yes, and in most cases it's required. Ground-up construction loans are business-purpose loans and must be closed in the name of an LLC, LP, or Corporation. If you don't already have an entity, we can guide you on what's needed — it's a straightforward step and protects you personally as well.
Our ground-up construction programs are available in 48 states plus DC, covering the vast majority of the country. A small number of restrictions may apply in certain states. Contact us and we'll confirm availability for your specific location.
An interest reserve is a portion of your loan set aside to cover monthly interest payments during construction. Rather than paying out of pocket each month, the interest is drawn from this reserve. Many programs build this into the loan automatically, keeping your cash flow free to manage the project. It's a significant benefit and a key reason construction loan costs are manageable during the build phase.
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Let's Structure Your Deal.
No obligation. Our team responds within 24 hours.
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MortgageHouz is a licensed mortgage company specializing in investor lending — ground-up construction, fix-and-flip, bridge loans, HELOC, and DSCR rental financing. We help builders, developers, and investors access the right capital to close more deals nationwide.

MortgageHouz (NMLS #2755375) · FRE Associates LLC · All loan programs are subject to approval, underwriting guidelines, and applicable state and federal lending laws. Rates, terms, and programs are subject to change without notice. This is not a commitment to lend. Ground-up construction loans are business-purpose, non-owner-occupied investment loans. For licensed real estate and mortgage professionals only where applicable. Not all programs available in all states. Not available for properties in New York without additional authorization. Equal Housing Lender.

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