📞 (877) 298-1001 · Mon-Sat 7am-9pm CT · Lending in Illinois · NMLS #1734316
— CONSTRUCTION LOANS · CHICAGO, IL

Construction in Chicago
Up to 85% LTC. 24-Month Terms.

Chicago real estate developers: ground-up construction financing for spec homes and investor projects. Up to 85% of total costs. Draw schedules aligned to milestones.

Check My Chicago Rate →
9.50%
From Rate
85%
Max LTC
$5M
Max Loan
24 Months
Term

Construction Loans in Chicago, IL — Key Facts for Builders

Why Chicago Is a Strong Market for Construction Investors

Chicago is the economic center of the Midwest — CME Group, Boeing, United Airlines, McDonald's HQs. Neighborhood investment strategies work well here; specific areas (Logan Square, Pilsen, Avondale) have seen significant gentrification. Lower appreciation than Sunbelt metros but strong rental yields in neighborhood plays. High property taxes must be factored in.

Median Price
$325,000
Citywide
Rental Yield
6.8%
Average gross
Appreciation
2.8%
YoY
Metro Pop
9.5M
Greater Chicago

Active Chicago Investor Neighborhoods

CHICAGO

Lincoln Park

Active investor market with strong rental demand and construction activity.

CHICAGO

Wicker Park

Active investor market with strong rental demand and construction activity.

CHICAGO

Logan Square

Active investor market with strong rental demand and construction activity.

CHICAGO

Pilsen

Active investor market with strong rental demand and construction activity.

CHICAGO

Bucktown

Active investor market with strong rental demand and construction activity.

We also fund investments throughout the greater Chicago metro including Evanston, Oak Park, Naperville, Aurora, and Schaumburg.

Recent Chicago Closings

SFR Spec Build · Lincoln Park
$390K Construction Loan
Closed
85% LTC · 18-month term · 5 draws · experienced builder · closed in 21 days
Duplex New Build · Wicker Park
$520K Construction Loan
Closed
80% LTC · 24-month term · 6 draws · took out with DSCR refi at CO
Infill Development · Logan Square
$715K Construction Loan
Closed
82% LTC · 24-month term · 7 draws · 3-lot subdivision · closed in 30 days

Key Considerations for Chicago Investors

Permit and approval timelines

Chicago permitting varies by submarket — 30-60 days in some areas, 4-6 months in others. Include in budget.

Builder qualifications

Chicago construction lenders favor experienced builders. First-time builders qualify with GC partnership.

Draw schedule structure

Typical Chicago draws: 10-15% at closing, 5-7 draws during construction, 10% at CO. Inspections required.

Take-out financing

Construction loans must be refinanced at completion. Plan take-out: 30-year DSCR for rentals, traditional for sales. Chicago's strong market makes take-outs reliable.

Frequently Asked Questions — Chicago Construction

What's the maximum LTC on a Chicago construction loan?

Up to 85% LTC. First-time builders may be capped at 75-80%. Experienced builders access 85%+ reliably.

Do I need to be an experienced builder for a Chicago construction loan?

First-time builders can qualify with a GC partnership, strong subs, and adequate reserves.

How does the Chicago draw schedule work?

10-15% at closing (lot + permits), 5-7 milestone draws during construction, 10% at CO. Each requires inspection.

What's the typical construction loan term in Chicago?

Construction loans in Chicago run 12-24 months. Most spec builds complete in 9-14 months.

What permits do I need in Chicago before closing?

Most lenders require permits in-hand or at final approval before funding vertical construction.

Can I use a construction loan for a Chicago rental property build?

Yes. Build-to-rent is strong in Chicago. Close with construction loan, build, take out with 30-year DSCR at CO.

What credit score is needed for a Chicago construction loan?

Most programs require 680+ FICO. Strongest pricing at 720+.

What loan amounts are available for Chicago construction?

Construction loans in Chicago range from $250K to $5M+. Most SFR spec builds fall in $300K-$800K.

Related Chicago Loan Programs

DSCR Loans in Chicago → Fix & Flip in Chicago → Bridge in Chicago → Construction in Illinois →

Get Your Texas DSCR Rate Today

No credit pull. No commitment. Speak with a licensed financing firm that knows the Texas investor market.

Check My Eligibility →

By clicking Check My Eligibility, you are providing express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone call, or email, possibly using automated technology, to the number and email you provided, regarding your loan inquiry (including marketing and customer care messages). If you wish to opt out, reply “STOP” to any text. Text “HELP” for help. Message frequency may vary. Message and data rates may apply. Consent is not required to obtain services. See our Privacy Policy and Terms & Conditions.

Investment Property Only • 660+ FICO • $200K+ Loans

🔒 SSL Secured  ·  256-bit Encryption  ·  ✓ Investment Properties

Or call us directly: (877) 298-1001