Volusia County is one of the faster-growing parts of Central Florida, and much of that growth is new construction: subdivisions west of I-95, infill lots in older mainland neighborhoods and scattered platted lots in Deltona and DeLand. For investor builders, a new block home that is cheaper to insure can be the easiest rental to finance afterward.
In short: LendingStreet finances ground-up construction of 1-8 unit investment properties in Daytona Beach and across Volusia County, including spec homes, build-to-rent houses, infill duplexes and fourplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and funds are released through a draw schedule after inspections. Plans, permits, a detailed budget and builder experience are central to approval.
Three kinds of land show up most often. Platted lots in older subdivisions in Deltona, DeLand, Orange City, Edgewater and parts of Port Orange, many created decades ago, give builders single sites for spec and build-to-rent homes. Infill lots in Daytona Beach, Holly Hill and South Daytona allow new homes or duplexes among older houses. And the planned communities along LPGA Boulevard and west of I-95 sell lots or homes to builders in phases.
Each city and the county have their own zoning, impact fees and permitting, and utility service ranges from city water and sewer to well and septic in parts of west Volusia. Confirm utilities, zoning and impact fees before you put land under contract.
Demand for new homes comes from in-migration to Central Florida, the growth of the I-4 corridor toward Orlando and buyers and renters who want newer, more insurable houses. That demand does not make every lot work: impact fees, utility connections, fill and drainage can turn a cheap lot into an expensive one.
Florida's statewide building code includes strict wind design requirements, and near the coast, buildings in the wind-borne debris region generally need impact-rated windows or approved shutters. Volusia builders commonly use concrete block construction with a tie beam and engineered truss connections. Those features add cost but tend to lower insurance premiums later, which matters for a build-to-rent loan.
In flood zones, the finished floor must meet the local required elevation, and an elevation certificate is used for permitting and flood insurance. Fill, stem walls and drainage plans affect the site budget. Coastal construction near the beach has additional state and local review.
This example is illustrative and not a quote. A builder plans a four-bedroom block home on a platted Deltona lot with city water and sewer. The lot costs $55,000, hard costs are $305,000 and soft costs (plans, engineering, permits, impact fees, builder's risk insurance and interest reserve) are $40,000. Total cost is $400,000.
At 85% loan-to-cost the loan is $340,000, and the builder contributes $60,000. When the home is finished and leased at $2,350 a month and appraises at $420,000, a DSCR refinance at 75% LTV is $315,000. With estimated principal and interest of about $2,170, taxes of $470 and a new-construction insurance premium of $175, the total payment is about $2,815 and DSCR is about 0.83x.
The builder's equity normally goes in first, covering the lot and early costs before loan funds are drawn. Keep each draw request organized with invoices, photos and lien releases; Florida's construction lien law makes clean lien paperwork especially important for both lender and owner.
| Draw stage | Share of hard costs | Amount |
|---|---|---|
| Site work, slab and plumbing rough-in | 15% | $45,750 |
| Block walls, tie beam and trusses | 25% | $76,250 |
| Roof, windows and doors (dried in) | 20% | $61,000 |
| Mechanical, electrical, insulation, drywall | 22% | $67,100 |
| Finishes, final inspection and certificate of occupancy | 18% | $54,900 |
Hurricane season runs June 1 to November 30. Builder's risk coverage with wind protection is essential, and some carriers restrict binding new wind coverage when a named storm is approaching. Many builders aim to have the home dried in, with roof, windows and doors installed, before peak season in August and September.
Draws follow inspection of completed stages, so the schedule above is also a funding schedule. A storm delay pushes draws out and adds interest; leave room for that in the interest reserve.
New homes can outperform older stock on the payment side of the DSCR equation: newer roofs, impact protection and modern wiring usually mean lower insurance, and new homes need fewer early repairs. Taxes on a new home are based on its full value from the first full assessment, so budget them on the finished value.
Watch HOA rules in planned communities, which sometimes restrict leasing or require minimum lease terms, and check whether a community is age-restricted, which can limit who you can rent to.
For spec homes built to sell, keep the price band in mind. New homes priced near the middle of the local market tend to have the deepest buyer pool, and buyers increasingly ask for insurance quotes before they commit, which favors new block construction with impact protection.
Construction loans are underwritten on the project and the team.
Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify. Buildings with 9 or more units are commercial; see our multifamily loans page for those.
Builders new to Volusia can still qualify if they have completed similar projects elsewhere in Florida and bring a team that knows the local permitting and inspection process.
Our investor loans are business-purpose loans on non-owner-occupied property. When the home is finished, sell it or refinance into a DSCR loan once it is leased. Use the construction draw schedule calculator to plan your draws, see construction loans in Florida for statewide details, and send your project through the form below.
On loan-to-cost, covering land, hard costs and soft costs. Terms are set per project.
Near the coast, homes in the wind-borne debris region generally need impact-rated windows or approved shutters. Confirm with the building department.
A survey document showing the building's elevation relative to flood levels, used for permitting and flood insurance in flood zones.
Funds are released after inspections confirm each stage is complete.
Yes, with builder's risk coverage that includes wind and a schedule that gets the home dried in quickly.
Yes, for 1-8 unit investment properties with plans, permits and a qualified builder.
You sell or refinance into a DSCR loan once the property is leased.
Yes, residential buildings of up to 8 units, with plans, permits and an experienced builder.
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