Columbus is one of the few large metros where an infill lot can still cost less than a car, and where new rental housing is in steady demand. That combination makes ground-up building attractive, as long as the budget is honest and the finished rents support the long-term loan.
In short: LendingStreet is our top pick for ground-up construction lending in Columbus. We fund investor builds of 1 to 8 units, including infill singles, doubles and triplexes, suburban spec homes and build-to-rent projects. Loans are sized on loan-to-cost with terms set per project, draws follow inspections, LLC borrowers are standard and the finished rental can refinance into a 30-year DSCR loan with no W-2s or tax returns. Get a quote with the form below or call (877) 298-1001.
Central Ohio rewards investors who build for the rental market, and LendingStreet is set up for exactly that. We finance new single-family homes, two- and three-unit buildings on city lots, small 5-8 unit buildings and spec homes in the growing suburbs.
Every loan is sized on loan-to-cost and built around the project's plans, permits, budget and builder experience. Construction money is released in draws after inspections. Because we also write DSCR rental loans, we can plan the refinance into long-term debt from the start, so you are not hunting for a new lender the month the certificate of occupancy arrives.
To size a Columbus project, use the form below or call (877) 298-1001.
In the city, investors are building on vacant and land bank lots in Linden, the Near East Side, Franklinton, the Hilltop, the South Side and parts of Weinland Park and Milo-Grogan. The surrounding housing stock is mostly older frame singles and doubles, so a new two- or three-unit building with modern systems leases well against it.
In the suburbs, Grove City, Hilliard, Reynoldsburg, Groveport, Canal Winchester, Pickerington, Delaware, Marysville and Johnstown see spec and build-to-rent single-family work. Large employers and new investment in the region, including the Intel project east of the city whose timeline has shifted, keep builders interested, but base your plan on today's demand rather than projections.
Building permits in the city run through the Department of Building and Zoning Services. Columbus has been rewriting its zoning code, starting with major corridors, so rules for density and parking may differ from what an older plan assumed. Confirm the current zoning for your parcel before you design.
Land bank lots can be inexpensive, but they often come with conditions such as a completion deadline or design standards. Read the purchase terms closely and make sure your build schedule can meet them.
Ohio winters affect schedules. Footings and foundations need to be planned around frost, and an exterior shell before the coldest months keeps interior work moving.
Below is a general comparison with the lender types Columbus investors usually consider. Other lenders' terms differ from one to the next.
| Question for the lender | LendingStreet | Typical bank | Typical private or hard money lender |
|---|---|---|---|
| Does it fit investor builds? | Yes, spec, build-to-rent and small 5-8 unit buildings | Sometimes, often for long-time clients | Sometimes, mostly short-term |
| How is the loan sized? | On loan-to-cost; terms set for each project | Often lower leverage with extra underwriting | Varies |
| New doubles and triplexes for rent | Yes, financed as investor builds with a DSCR exit | Varies | Short-term only |
| What do they want to see? | Plans, permits, a line-item budget and builder experience | Often income, tax returns and deposits | Varies |
| Can an LLC borrow? | Yes, LLC borrowers are standard | Varies | Usually |
| How are draws handled? | After inspections, on a schedule set up front | Varies | Varies |
| What happens at completion? | Refinance into a DSCR rental loan or sell | Often a new application elsewhere | Pay off; usually no long-term loan |
| Can they follow you to other markets? | Yes, all 50 states and DC | Usually not | Usually not |
This example is illustrative and not a quote.
An investor buys a city lot for $38,000 and builds a three-unit rental. Hard costs are $520,000 and soft costs $52,000, for a total of $610,000. For illustration, the construction loan is sized at 80% of cost, or $488,000, and the investor contributes $122,000. The build budget is released in about 6 draws of roughly $86,667, each after an inspection.
Finished, the triplex is valued at $760,000 and each unit rents for $1,850, a total of $5,550 a month. A $488,000 DSCR refinance pays off the construction loan in full, about 64.2% of value. Estimated principal and interest is $3,288, estimated taxes $1,172 and insurance $250, for $4,710 a month and a DSCR of about 1.18x.
Ohio property taxes are set by county and taxing district, and rental property does not receive the reductions available to owner-occupants. Franklin County rates vary widely by school district, so the same triplex can carry a different tax bill a few miles apart. Confirm the rate with the county auditor.
Ohio counties charge a conveyance fee when property is sold, which matters on a sale exit. Insurance is generally moderate in Central Ohio, but price builders risk and the finished rental policy before closing.
Columbus requires rental properties to be registered with the city. Build that step into your lease-up plan.
These questions make lender quotes easy to compare:
LendingStreet's answers: loan-to-cost sizing with terms set per project, with leverage that can be lower on larger balances or 5-8 units (varies by program); draws after inspections on an agreed schedule; builder experience or an experienced general contractor required; LLC borrowing standard; and a DSCR refinance at completion with a 1.0x standard minimum, rate-and-term up to 80% LTV on some programs and seasoning that varies by program.
Good Columbus files include plans and permits or permits in process, a line-item budget with contingency, comparable rents for new units, and a builder with a record of finished work. Projects without plans or permits, or a borrower with no build experience and no experienced general contractor, usually do not qualify.
If the project is 9 units or more, it is commercial. For 1-8 unit builds anywhere in Central Ohio, get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We are an investor lender that sizes construction loans on loan-to-cost, releases draws after inspections, lends to LLCs and offers a 30-year DSCR refinance on the finished rental, which suits Columbus build-to-rent projects.
Yes. We lend in Columbus, Franklin County and the surrounding counties, all across Ohio and in all 50 states and DC, on non-owner-occupied investment property.
Yes, if the project meets our requirements and the land bank's conditions. Make sure your schedule meets any completion deadline in the purchase agreement.
It can, if the combined rent covers the estimated payment, taxes and insurance. The standard minimum DSCR is 1.0x, and you can check your numbers with our DSCR calculator.
Terms are set per project based on the scope and schedule. Tell us your timeline and we will structure around it.
After each stage of work, an inspection confirms progress and the draw for that stage is released. Our draw schedule calculator shows how a budget splits into stages.
Experience matters. If you have not built before, you will usually need an experienced general contractor on the job.
Yes. We treat 5-8 unit buildings as residential investor projects. Leverage can be lower than on 1-4 units and varies by program.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.