New housing in the Syracuse area is being built in two very different places: open subdivisions north of the city, where Micron's planned plant has drawn attention, and vacant city lots where a new house or duplex can replace a building that came down years ago.
In short: LendingStreet finances ground-up construction of 1-8 unit investment properties in Syracuse and Onondaga County, including spec homes, build-to-rent houses and infill duplexes and fourplexes. Loans are sized on loan-to-cost with terms set per project, and funds are released through a draw schedule after inspections. Approved plans, permits, a detailed budget and builder experience are central to approval.
North of the city, Clay, Cicero, Lysander and the Liverpool area have the land, sewer and road access that new subdivisions need. Investors there build single-family spec homes and two-family or townhome rentals for buyers and renters drawn by nearby employers.
Inside the city, infill is a different business. Lots are narrow, utilities are old and neighbors are close. A new two-family on a Southside or Near Westside lot can make sense when the numbers work, but it takes careful site planning and a builder who has done city work before.
We look for projects that are ready to build. That means stamped plans, issued or imminent permits, a line-item budget and a general contractor with a record of finishing similar homes.
Construction loans are sized against the total cost of the project: land, hard construction costs and soft costs such as design, permits and fees. Terms are set per project, and leverage depends on your experience, the location and the plan for the finished property.
Projects without plans or permits, or a borrower with no build history and no experienced general contractor, usually do not qualify. Bringing in an experienced builder is often the fastest way to make a first project fundable.
This example is illustrative and not a quote. An investor owns a lot in Clay valued at $75,000 and plans a single-family spec home with $355,000 in hard costs and $38,000 in soft costs, for a total project cost of $468,000. Assuming the project is sized at 80% of cost for this example, the loan is $374,400, with the land value credited toward the investor's share.
Hard-cost funds are released in stages after each inspection. If the build takes about ten months and the average drawn balance is about $196,900, estimated interest-only carry is about $17,229 over the build. The investor covers the rest of the soft costs, about $18,600, in cash. Budget for taxes, builder's risk insurance and utilities on top of that.
| Draw | Share of hard costs | Amount released |
|---|---|---|
| Closing (land credit) | - | - |
| Foundation and footings | 15% | $53,250 |
| Framing and roof | 25% | $88,750 |
| Mechanicals and windows | 20% | $71,000 |
| Drywall and finishes | 25% | $88,750 |
| Final and certificate of occupancy | 15% | $53,250 |
Central New York's winters affect construction schedules. Footings have to go below the frost line, concrete work in deep cold needs heating and blankets, and heavy snow can stop a site for days. Many local builders aim to have a house framed and closed in before winter so interior trades can keep working.
Build that calendar into your loan term and your carrying cost budget. A project that starts its foundation in November will likely finish later and cost more to carry than one that breaks ground in April.
The Greater Syracuse Land Bank sells vacant lots as well as houses, and some lots come with development requirements or timelines. City zoning, setbacks, parking and utility connections all need to be confirmed before you buy a lot for a new two-family or fourplex.
Ask the city's permit office about water and sewer tap fees, demolition history and any environmental review that applies. Old foundations and fill sometimes turn up when a site is excavated.
Not every new project here is a for-sale house. Some investors build side-by-side or stacked two-family homes, or small fourplexes, to hold as rentals. New construction rents well against Syracuse's older stock because tenants get modern insulation, efficient heating and lower utility bills, which matter in a long winter.
Before you commit, compare your all-in cost per unit with what existing two-family and fourplex buildings sell for nearby. If a renovated older building costs far less per unit, the new build needs a clear rent premium to justify it. Check the town's zoning for two-family and multi-unit use, because many suburban districts allow only single-family homes by right.
A spec home is usually sold, and the construction loan is repaid at closing. A build-to-rent home or duplex can be refinanced into a DSCR loan once it has a certificate of occupancy and signed leases, which lets you keep the property with a 30-year term that qualifies on rent.
Plan that exit from the start; our bridge to DSCR guide explains how timing and leases affect the refinance.
Send LendingStreet the plans, budget, builder information and site details. We will review the project, explain how it would be sized and walk you through the draw process. Statewide information is on our New York construction loans page.
The more complete the package, the faster the answer. A file with stamped plans, a permit or permit application, a signed builder contract and a line-item budget can usually be reviewed quickly, while a concept sketch and a rough number cannot. If you are early in planning, call us anyway; we can tell you what to line up before you buy the lot.
Yes. We finance ground-up spec homes and build-to-rent projects on 1-8 unit investment properties throughout Onondaga County.
On loan-to-cost: land, hard costs and soft costs. Terms are set per project based on experience, location and exit.
Through a draw schedule. After each stage is inspected, funds for that stage are released. Our draw schedule calculator can help you plan.
Possibly, if zoning allows it and the project has plans, permits and an experienced builder. Confirm zoning and utility connections with the city first.
Experience helps a great deal. A borrower without a track record usually needs an experienced general contractor on the project to qualify.
It affects your schedule and carrying costs more than the loan terms. Plan footings and framing for warmer months where possible, and budget extra time and interest for a project that starts late in the year.
Yes. Once the home has a certificate of occupancy and leases, you can refinance into a DSCR loan that qualifies on the rent.
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.