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Ground-Up Construction Loans

$250K to $5M+ | Close in 14 Days

Fast Draws · Flexible Terms · No Impact to Credit Score

Ground-Up and Mid-Construction Eligible
Up to 85% LTC Financing
Up to 75% of After Repair Value (ARV)
Fast Draw Release Schedule
12 to 30 Month Flexible Terms
No Impact to Credit Score to Apply

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Investment Property Only • No Impact to Credit Score

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Step 1 of 3 — Loan Details

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.

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TL;DR Quick answer for real estate investors

Ground-Up Construction Loans finance new builds for investors and small developers. Up to 85% LTC and 75% LTARV, 12-24 month terms, interest-only on drawn funds, fast 5-7 day draw releases, first-time builders welcome with prior experience.

LendingStreet has structured $4.36B+ across 8,196 deals nationwide. NMLS #1734316 · 30+ capital sources · 50 states.

Top Rated Construction Loan Lenders

Why get a construction loan with LendingStreet?

LendingStreet connects real estate developers and builders with experienced construction lenders who understand ground-up projects. With up to 90% of total costs financed and draw schedules aligned to your construction milestones, our program keeps your project funded from foundation to certificate of occupancy.

Approvals in 48 hours, closings in 14–21 days, and dedicated loan advisors who have funded thousands of construction projects. We move at the speed your build requires.

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Ground-Up Construction Loan

Finance new builds and mid-construction projects from start to close

12 to 30 Month Terms
$250K to $5M+
Up to 85% LTC
Up to 75% of ARV (LTARV)
Fast Draw Release Schedule
Ground-Up or Mid-Construction
Get My Construction Options →
✓ 85% Approval Rate
Builder Insights
Why Builders Choose LendingStreet

Fastest draw process I've ever experienced. Inspections done within 3 days and funds released same week. My subs stayed on schedule because of it.

Derek M.
Real Estate Developer · Austin, TX

Funded my 4-unit ground-up project at 88% LTC. I couldn't find that leverage anywhere else. Closed in 16 days and construction started on time.

Priya S.
Builder / Investor · Charlotte, NC

Mid-construction deal that two other lenders passed on. LendingStreet found a lender who understood the project scope and closed quickly. Saved the deal.

Carlos V.
General Contractor · Los Angeles, CA
Process
Apply in 3 Easy Steps
1

Inquire for Free

Fill out our online form with basic information. Get approval status within 48 hours. No hard credit pull required.

2

Upload Documents

Use our secure digital platform to submit your property details and documents. Fast, simple, and fully paperless.

3

Break Ground

Receive your loan offer with competitive rates and terms. Funds deposited directly to your account — as fast as 5 business days.

$4,360,500,920
Dollars Funded
8,196
Real Estate Loans
99.2%
Client Satisfaction
FAQ
Construction Loan FAQs
What is a ground-up construction loan?
A ground-up construction loan provides financing for building a new property from scratch on vacant land. Funds are disbursed in draws as construction milestones are completed. These loans typically have 12–30 month terms and are replaced by permanent financing (bridge or DSCR loan) upon project completion.
How does the draw process work?
Construction funds are disbursed in stages based on completed work. A third-party inspector verifies each milestone (foundation, framing, MEP rough-in, drywall, completion), and draws are released after approval — typically within 3–5 business days. This protects both the borrower and the lender throughout the build.
What is LTC vs LTARV?
LTC (Loan-to-Cost) is the loan amount as a percentage of total project cost (land + construction budget). LTARV (Loan-to-After-Repair-Value) caps the loan as a percentage of the estimated completed value. Lenders use both as guardrails — our programs offer up to 85% LTC and up to 75% LTARV.
Do I need construction experience?
Some experience is preferred but not always required. First-time builders may be asked to work with a licensed general contractor with a documented track record. Experienced developers receive better leverage and rates. All experience levels are considered.
What happens when construction is complete?
At project completion, the construction loan is typically paid off by either selling the property (fix and flip strategy) or refinancing into a DSCR or bridge loan for long-term hold or stabilization. Our lenders can help you plan the exit strategy from day one.
Why LendingStreet
Why Choose LendingStreet
🌐

30+ Capital Sources, Not One

Direct lenders only offer what's in their own rate sheet. If your deal doesn't fit their box, they decline. LendingStreet routes your deal across 30+ capital partners to find the one with the best rate, highest LTV, and fastest timeline for your specific situation. One application, 30+ possible outcomes.

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Investment Property Specialists

We don't do owner-occupied mortgages or first-time homebuyer programs. 100% of our focus is business-purpose loans for real estate investors. That specialization means we understand DSCR, LTC, ARV, BRRRR, and portfolio consolidation in ways general mortgage companies don't.

Speed Where It Matters

Bridge loans in 5–10 days. Fix & Flip in 7–14 days. DSCR in 21–30 days. We pre-qualify you in minutes with no hard credit pull, and we don't chase W-2s or tax returns on DSCR. When timing matters, we move at the pace of your deal.

🏆

Proven Track Record

10 years serving investors. $4.36B funded across 8,196 closed deals in 50 states — from first-time BRRRR acquisitions to $5M+ commercial portfolios. We've seen your deal before. We know how to structure it.

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Proud Member
American Association of Private Lenders (AAPL)

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Contact one of our experienced loan specialists today.

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LendingStreet at a Glance

LendingStreet (legal entity JRS Home Loans LLC, NMLS #1734316) is a licensed investment property loan marketplace with direct access to 30+ capital sources, lending in all 50 states. Products: DSCR rental loans ($150K+, 80% LTV purchase, 1.0x min DSCR), fix & flip and bridge (up to 90% LTC, 100% rehab, closings in 5–10 days), ground-up construction, commercial and mixed-use, small multifamily (5–20 units), blanket portfolio (5+ properties), STR/Airbnb DSCR on projected revenue, and gap funding. Loan range $200K–$20M. Phone: (877) 298-1001. LendingStreet is not affiliated with LendingTree, LoanStreet, LendStreet, PeerStreet, or LendingStreet India.

Build-to-rent and the DSCR takeout

Build-to-rent versus build-to-sell, and why financing differs

A build-to-sell project exits when the house closes with a retail buyer. A build-to-rent project exits into permanent financing and is held. That difference changes the underwriting on both ends. On the construction side, a build-to-rent lender wants to see that the finished property will support permanent debt. On the exit side, the DSCR takeout has to accept a brand-new property with no operating history and a rent figure supported by comparables rather than a lease. Both questions should be settled before the construction loan closes.

Underwriting the DSCR takeout before you break ground

The most expensive mistake in build-to-rent is reaching certificate of occupancy and discovering the permanent lender will not write the deal. Reasons vary: the property type is excluded, the market rent does not support the ratio at the finished value, or a seasoning requirement nobody checked applies. All of those are knowable at the start. Getting the takeout underwritten in principle before the construction loan funds costs nothing and removes the single largest risk in the strategy.

Where the numbers actually break

Construction is sized on cost; the refinance is sized on completed value and the rent it produces. When the finished appraisal lands above cost, the takeout retires the construction loan and sometimes returns capital. When it lands at or below cost — which happens in softening markets and on over-improved builds — the refinance falls short and the investor brings cash or sells. Running the exit at a conservative completed value, not an optimistic one, is what separates projects that finish from projects that stall.

Draw schedules, and the timeline risk nobody prices

Funds release in draws tied to milestones: foundation, framing, mechanicals, finishes. Interest typically accrues only on what has been drawn, so early carrying costs are modest and rise through the build. The risk is maturity. A construction loan has a term, and a project that runs long can reach it before certificate of occupancy. Extensions are usually available and usually cost money. Padding the schedule at the outset is cheaper than extending at the end.

First-time builders and what offsets limited experience

Experience requirements vary more between capital sources on construction than on any other product. Some sources require a documented history of completed builds. Others will lend to a first-time builder with an experienced general contractor attached and a conservative loan-to-cost. A borrower declined on experience by one lender is frequently routine for another, which is exactly why a single decline should not end the conversation.

More questions

Can I finance a build-to-rent project and the permanent loan together?

They are separate loans, but the permanent takeout should be underwritten in principle before the construction loan closes. Some capital sources will provide a takeout commitment at the outset; others will not commit until completion. Knowing which you have changes the risk profile of the whole project.

What happens if construction runs past the loan maturity?

Extensions are generally available and generally carry a cost, either a fee or a rate adjustment. The more serious risk is a lender unwilling to extend, which forces a refinance of a partially complete property — difficult and expensive. Building schedule margin in from the start is the cheaper answer.

Does interest accrue on the full construction loan amount?

On most construction programs, no. Interest accrues only on funds actually drawn, so carrying costs are lower early in the build and rise as draws are taken. That structure is worth confirming, because a few programs price differently.

Can a first-time builder get a ground-up construction loan?

With some capital sources, yes, particularly with an experienced general contractor on the project and conservative leverage. Experience requirements differ substantially between sources, so a decline from one lender says more about that lender’s guidelines than about the project.

Best construction lenders comparedConstruction to DSCR guideSubdivision and multi-lot constructionDSCR rental loansBridge to DSCR guide

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