Kent County has room to build. Between Smyrna in the north and Milford in the south, new subdivisions, rural lots and infill parcels draw spec builders and build-to-rent investors who want new homes near Dover's jobs at prices below New Castle County.
In short: LendingStreet finances ground-up construction for 1-8 unit investor projects in Dover and Kent County, including spec homes, build-to-rent houses, duplexes, fourplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project and funds released through a draw schedule after inspections. Plans, permits, a detailed budget and builder experience drive approval, and rural sites add septic and well questions.
Most new residential construction in the county is in and around Smyrna, Clayton, Camden, Wyoming, Magnolia and Milford, plus scattered rural lots. Inside Dover, infill opportunities are smaller in number but closer to downtown jobs and the university. Buyers and renters for new homes include military families, state employees and buyers relocating from northern Delaware.
Lots outside sewer service need septic approval, and many need a private well. Those approvals can take time and change the cost, so confirm them before you close on land.
Town limits matter. Smyrna, Clayton, Camden, Wyoming and Milford each have their own permitting and utility arrangements, while unincorporated land falls under Kent County. The same builder can face different fees and timelines a few miles apart.
Lenders fund the plan, the builder and the exit, not just the land. Assemble these items before applying:
If you are buying the lot and starting construction at once, the land purchase can be part of the project cost. If you already own the lot, its value and what you paid for it both matter to the loan structure.
Builders new to Kent County should share projects completed elsewhere, along with references and photos.
This example is illustrative and not a quote. A builder buys a lot for $70,000 and plans a four-bedroom spec home with $315,000 of hard costs and $25,000 of soft costs including permits, septic design and utility hookups. Total cost is $410,000. At 80% loan-to-cost, the loan is $328,000, funded through draws.
The home is projected to sell for about $495,000. After repaying the loan, interest and selling costs, the builder's margin depends on staying on budget and on schedule. The draw schedule below shows how the hard costs might be released.
If the market softens while the house is under construction, the builder may hold it as a rental and refinance into a DSCR loan instead of selling. Run that rent scenario before you start, so you know the backup works.
| Draw stage | Share of hard costs | Amount |
|---|---|---|
| Site, septic or sewer, foundation | 18% | $56,700 |
| Framing, roof, windows | 27% | $85,050 |
| Rough mechanicals and inspections | 18% | $56,700 |
| Insulation and drywall | 12% | $37,800 |
| Finishes, final and certificate of occupancy | 25% | $78,750 |
Funds for each stage are released after an inspector confirms the work. You or your builder pay for work in progress and are reimbursed at each draw, so keep cash available between draws. The construction draw schedule calculator helps you plan. Inspections by the city or county are separate from our draw inspections, and both need to fit your schedule.
Weather affects Kent County schedules: wet springs slow site work on low ground, and winter can delay concrete and roofing. Build those delays into your interest budget.
New rental homes near Dover Air Force Base, in Camden and Wyoming and in the Smyrna area can appeal to military families who want newer, low-maintenance homes. Duplexes and fourplexes on suitable lots can add rentals with one build. When the homes are finished and leased, a DSCR loan can pay off construction financing, and Kent County's modest taxes help the ratio.
Check the subdivision covenants before you plan rentals, since some communities limit leasing.
Smaller build-to-rent projects of two to four homes on scattered lots are common in Kent County. Each can be financed as a separate construction loan or planned together, and then refinanced together on a blanket loan once five or more are leased.
Rural Kent County sites can carry costs that town lots do not: perc testing, septic system design and installation, well drilling and longer driveways or utility runs. Low-lying land near the St. Jones River, Murderkill River and the bay shore can sit in flood zones that raise insurance and building costs. Get site costs into the budget before you commit.
Projects without plans or permits, a borrower with no build history and no experienced general contractor, and buildings over 8 units are outside residential construction lending. Larger projects are commercial; see the multifamily page.
If your project is close but missing a piece, such as septic approval or final plans, tell us where it stands. We can outline what is needed before a loan can move forward.
A spec home exits by sale. Build-to-rent homes exit into a DSCR loan once leased. Decide early, since the finish level, lot choice and timeline differ. Delaware's realty transfer tax applies to the land purchase and to a later retail sale, commonly about 4% split between parties, so include it in your budget.
Send the site address, plans, budget, schedule and builder history. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
On loan-to-cost, with terms set per project based on the plan, the builder and the exit. Approved plans, a detailed budget and an experienced builder support the strongest terms.
Yes, if septic and well approvals are in place or clearly obtainable. Site costs need to be in the budget.
Through draws after inspections confirm each stage is complete.
Yes. Build-to-rent single-family homes, duplexes and fourplexes are eligible, and a DSCR loan can refinance them once leased.
A track record, or an experienced general contractor, is usually required. Share past projects with addresses, budgets and completion dates.
Yes, small 5-8 unit residential buildings are eligible. Nine or more units are commercial.
The City of Dover inside city limits and Kent County outside. Smyrna, Milford and other towns have their own offices. Confirm jurisdiction before you apply, since fees and timelines differ.
Yes. Once five or more homes are complete and leased, a blanket portfolio loan can refinance them together with one payment.
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.