A developer closes on land in March with a plan to deliver a finished home by September. The budget is tight but realistic. The builder has done this before. The comps support the exit.
By June, the project is three weeks behind because the lender took 11 days to approve a draw that should have taken three. The delay costs $8,000 in carrying costs and pushes the completion into Q4, when the market slows.
This is how construction deals fail. Not because of bad projects. Because of slow capital.
Construction loans fund ground-up residential builds over 12-24 months. We finance the land, hard costs, soft costs, and builder profit. Payments are interest-only during construction. The loan converts to a sale or permanent financing at completion.
Funds release in stages through a draw process. We don’t hand you the full loan amount upfront. You get paid as work gets completed: land acquisition, foundation, framing, mechanical, drywall, final completion.
Each draw requires an inspection from a third-party inspector to verify progress. We verify the work matches the budget and the schedule. Then we release funds. The faster that cycle runs, the less it costs you in time and money.
Most lenders treat draws like paperwork. We treat them like project management. Our inspection process is built to move in days, not weeks, because we know your builder doesn’t wait for slow lenders.
We evaluate five things: the deal, the budget, the timeline, the borrower, and the builder.
The deal has to make sense on exit. If you’re selling, we need strong comps. If you’re refinancing into a DSCR loan, the completed property needs cash flow. We don’t finance projects that only work if everything goes perfectly.
The budget needs contingency built in. We expect 10 to 15 percent reserves for the things that always happen: permit delays, weather, cost overruns. Developers who skip contingency planning run out of money before they finish.
The timeline has to be realistic. We’ve funded enough projects to know when a schedule is aggressive versus impossible. If your builder says six months and the permit office says eight weeks minimum, the math doesn’t work.
Borrower experience matters. We finance experienced developers who have completed ground-up projects before. If this is your first build, you’ll need a strong builder partner with a proven track record.
The builder makes or breaks the project. We want licensed, insured contractors who finish on time and on budget. Builder problems become your problems fast in construction lending.
We lend up to 90% loan-to-cost and 75% loan-to-value. Interest reserves can be rolled into the loan, and soft costs are eligible for financing. We offer full, partial, or non-recourse options depending on the deal structure and borrower experience.
Underestimating soft costs. Permits, inspections, utilities, insurance, and carrying costs add up faster than most developers expect. Budget for them upfront or pay for them with delays later.
Unrealistic timelines. Weather happens. Permit offices move slowly. Labor shortages are real. Developers who build conservative schedules finish projects. Developers who build optimistic schedules explain why they’re late.
Choosing the wrong builder. A cheap bid from an unproven contractor costs more than paying market rate for someone reliable. We’ve seen it repeatedly.
Running out of money before completion. This happens when contingency reserves don’t exist or when budgets assume perfect execution. Construction never executes perfectly.
Housing inventory is still tight in most markets. New construction fills demand that existing inventory can’t meet. Buyers are paying premiums for new, move-in ready homes.
Developers with reliable capital have a timing advantage. They can build while others wait for financing or deal with lenders who can’t move fast enough to make projects work.
We built our construction loan product for developers who understand that timeline is budget. Every day a project sits waiting for a draw approval costs money. Every week of delay pushes completion further into uncertainty.
We close in as fast as 10 business days. We process draws quickly after inspection. We don’t charge prepayment penalties if you finish early or exit sooner than expected.
We finance developers who know how to build and need a lender who moves at the speed of construction. If that’s you, we’re ready.
Apply in minutes. Close your loan quickly.
