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

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

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

Construction Loans in Phoenix, AZ — Key Facts for Builders

Why Phoenix Is a Strong Market for Construction Investors

Phoenix recovered from the 2008 crash stronger than any major US metro. TSMC's $40B semiconductor fab in North Phoenix, Intel expansion, and massive retiree migration keep demand at all ends of the market. Scottsdale and Paradise Valley serve the luxury STR market; Mesa and Glendale offer cash-flow rentals.

Median Price
$440,000
Citywide
Rental Yield
6.1%
Average gross
Appreciation
4.5%
YoY
Metro Pop
5.1M
Greater Phoenix

Active Phoenix Investor Neighborhoods

PHOENIX

Arcadia

Active investor market with strong rental demand and construction activity.

PHOENIX

Scottsdale

Active investor market with strong rental demand and construction activity.

PHOENIX

Chandler

Active investor market with strong rental demand and construction activity.

PHOENIX

Gilbert

Active investor market with strong rental demand and construction activity.

PHOENIX

Tempe

Active investor market with strong rental demand and construction activity.

We also fund investments throughout the greater Phoenix metro including Scottsdale, Mesa, Chandler, Gilbert, and Glendale.

Recent Phoenix Closings

SFR Spec Build · Arcadia
$528K Construction Loan
Closed
85% LTC · 18-month term · 5 draws · experienced builder · closed in 21 days
Duplex New Build · Scottsdale
$704K Construction Loan
Closed
80% LTC · 24-month term · 6 draws · took out with DSCR refi at CO
Infill Development · Chandler
$968K Construction Loan
Closed
82% LTC · 24-month term · 7 draws · 3-lot subdivision · closed in 30 days

Key Considerations for Phoenix Investors

Permit and approval timelines

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

Builder qualifications

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

Draw schedule structure

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

Frequently Asked Questions — Phoenix Construction

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

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

How does the Phoenix 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 Phoenix?

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

What permits do I need in Phoenix before closing?

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

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

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

What credit score is needed for a Phoenix construction loan?

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

What loan amounts are available for Phoenix construction?

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

Related Phoenix Loan Programs

DSCR Loans in Phoenix → Fix & Flip in Phoenix → Bridge in Phoenix → Construction in Arizona →

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