The Seacoast has more demand for housing than land to build it on. Investors who can find a lot, get it permitted and build efficiently are filling a gap, but ledge, wetlands and review boards make planning the most important part of the budget.
In short: LendingStreet finances ground-up construction of 1-8 unit investment properties around Portsmouth, including spec homes, build-to-rent duplexes and townhomes, and small infill 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 realistic budget and builder experience drive approval.
Inside Portsmouth, buildable lots are rare, and projects tend to be infill: a second unit on an oversized lot, a teardown in an older neighborhood, or a small multi-unit building where zoning allows. Most investor construction happens in Dover, Somersworth, Rochester, Barrington, Newmarket and Exeter, where land is easier to find and town boards see more residential applications.
Build-to-rent duplexes and townhomes are popular because they deliver two or more rents on one lot and appeal to the many Seacoast tenants who want newer, more efficient housing than the older stock offers.
Smaller towns such as Barrington, Lee and Nottingham have more land but often require private wells and septic systems, which change both costs and how quickly lots can be approved.
We size construction loans on the total project cost: land, hard costs and soft costs such as plans, permits, engineering and impact fees. The loan covers a share of that cost, and your equity covers the rest, often including land you already own. Terms are set per project based on the plans, budget and your track record.
Borrowers without a build history can still qualify when they work with an experienced general contractor. Projects without plans or permits in hand, or with no experienced builder involved, usually do not.
Expect us to review the general contractor's license, insurance and recent projects, and to compare your budget against local costs. A budget that is too thin is one of the most common reasons a project struggles, so include a contingency line.
New Hampshire is known for ledge, and blasting or hammering it out can add tens of thousands of dollars to foundation work. Wetlands buffers and the state's shoreland protection rules near lakes, rivers and tidal water limit where you can build and how much of the lot you can cover. Outside city sewer, septic design and approval are required.
Utility connections can also take longer than expected, especially for new electric service and sewer tie-ins. Ask the utility and the town public works department about timing before you set a completion date, because a finished house without power or a sewer connection cannot be occupied, rented or sold.
Soil, drainage and stormwater plans are often required for new homes in Seacoast towns, even on small lots. These engineering costs belong in the soft cost line of your budget.
This example is illustrative and not a quote. An investor owns a Dover lot worth $150,000 and plans a side-by-side duplex with $430,000 of hard costs and $50,000 of soft costs, for a total cost of $630,000. At 75% of cost, the loan is $472,500, with the land equity covering much of the investor's share.
On completion, the units lease for $2,800 each, $5,600 a month, and the property appraises at $820,000. A DSCR refinance of $480,000, about 59% of value, repays the construction loan and closing costs. Estimated principal and interest is about $3,356; with taxes of $1,250 and insurance of $220, DSCR is about 1.16x.
Construction funds are not advanced in one lump. Each draw is released after an inspection confirms the stage is complete. Our draw schedule calculator lets you model your own phases.
| Stage | Share of hard costs | Amount |
|---|---|---|
| Foundation and site work | 15% | $64,500 |
| Framing and roof | 25% | $107,500 |
| Mechanical rough-in and windows | 20% | $86,000 |
| Insulation, drywall and interior | 25% | $107,500 |
| Finishes and certificate of occupancy | 15% | $64,500 |
Dover, Portsmouth and the surrounding towns each have their own planning boards, zoning boards and building departments. Subdivisions, site plans and variances can take months, and the frost season limits when foundations get poured. Submit your loan request with approvals in hand or a clear timeline to them.
Weather is a real factor in the Seacoast. Plan foundation work outside the deepest frost months where you can, and allow for slower exterior work in winter. A loan term that assumes a perfect schedule leaves no room for the delays that most New Hampshire builders expect.
Spec homes sell well on the Seacoast when they are priced for local buyers. Model your sale price from recent new-construction sales in the same town, not Portsmouth averages, and keep a cushion for selling costs, the seller half of the transfer tax and a slower season.
If the sale market cools, the same home may work as a rental. Run that second exit before you start so you know whether a DSCR refinance at your expected rent would repay the construction loan.
Each draw starts with a request and photos, followed by an inspection to confirm the work is complete. Funds are typically released after the inspection is approved and any lien waivers are received. Plan your cash so you can pay subcontractors before each draw arrives, and keep receipts and change orders organized. A clean draw history keeps the project on schedule and makes the final refinance easier.
Send plans, permits or the approval timeline, a line-item budget, the builder's experience and your exit plan. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
Spec homes, build-to-rent singles, duplexes and townhomes, infill duplexes and fourplexes, and small 5-8 unit buildings.
On loan-to-cost: a share of land, hard and soft costs, set per project.
Often, yes. The land value can count toward your share of the project cost.
Plans and permits, or a clear path to them, are required. Projects without them usually do not qualify.
Through a draw schedule, after an inspection confirms each stage is complete.
It affects your budget. Price foundation work after test pits so the loan covers real costs.
Yes. Many investors refinance into a DSCR loan once units are leased.
Yes. Small 5-8 unit residential buildings qualify, subject to zoning, plans, permits and builder experience.
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