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— CONSTRUCTION LOANS · MEMPHIS, TN

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

Memphis 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 Memphis Rate →
9.50%
From Rate
85%
Max LTC
$5M
Max Loan
24 Months
Term

Construction Loans in Memphis, TN — Key Facts for Builders

Why Memphis Is a Strong Market for Construction Investors

Memphis is the logistics capital of the US — FedEx World Hub (largest cargo hub globally), UPS, and Amazon operations drive massive employment. Median prices under $200K combined with 9-12% rental yields make it exceptional cash flow territory. Careful neighborhood selection is critical — some areas are investor-strong, others are not. Partner with local property management.

Median Price
$195,000
Citywide
Rental Yield
10.8%
Average gross
Appreciation
3.5%
YoY
Metro Pop
1.4M
Greater Memphis

Active Memphis Investor Neighborhoods

MEMPHIS

Midtown

Active investor market with strong rental demand and construction activity.

MEMPHIS

Cooper-Young

Active investor market with strong rental demand and construction activity.

MEMPHIS

Central Gardens

Active investor market with strong rental demand and construction activity.

MEMPHIS

East Memphis

Active investor market with strong rental demand and construction activity.

MEMPHIS

Harbor Town

Active investor market with strong rental demand and construction activity.

We also fund investments throughout the greater Memphis metro including Germantown, Collierville, Bartlett, Cordova, and Lakeland.

Recent Memphis Closings

SFR Spec Build · Midtown
$234K Construction Loan
Closed
85% LTC · 18-month term · 5 draws · experienced builder · closed in 21 days
Duplex New Build · Cooper-Young
$312K Construction Loan
Closed
80% LTC · 24-month term · 6 draws · took out with DSCR refi at CO
Infill Development · Central Gardens
$429K Construction Loan
Closed
82% LTC · 24-month term · 7 draws · 3-lot subdivision · closed in 30 days

Key Considerations for Memphis Investors

Permit and approval timelines

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

Builder qualifications

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

Draw schedule structure

Typical Memphis 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. Memphis's strong market makes take-outs reliable.

Frequently Asked Questions — Memphis Construction

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

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

How does the Memphis 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 Memphis?

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

What permits do I need in Memphis before closing?

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

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

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

What credit score is needed for a Memphis construction loan?

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

What loan amounts are available for Memphis construction?

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

Related Memphis Loan Programs

DSCR Loans in Memphis → Fix & Flip in Memphis → Bridge in Memphis → Construction in Tennessee →

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