Ground-Up Construction Loans
Construction financing for investor builders, spec developers, and build-to-rent operators. Land plus hard and soft costs in one loan, interest-only on what you've drawn, with funds released at construction milestones.
Up to LTC
85%
Up to LTARV
75%
Term
12–24 mo
Payments
Interest-only
The basics
A ground-up construction loan finances the full project — land, hard costs (foundation, framing, mechanicals, finishes), soft costs (permits, plans, fees), and a contingency reserve. Money releases in scheduled draws as each phase passes inspection. You only pay interest on the balance that's actually been drawn, so the early-stage payments stay small and grow as the build progresses.
Most investors exit by selling the finished property, refinancing into a long-term DSCR rental loan (the build-to-rent path), or rolling into a construction-to-permanent product. The loan is structured around your project's scope, your builder's experience, and the realistic timeline to certificate of occupancy.
Loan terms
Industry-typical ranges for 2026. Your final terms depend on credit, experience, and the deal — Max will lock your specific quote during pre-approval.
Interest rate
9%–14%
Industry-typical range for 2026. Experienced builders with completed projects see the lower end of the range.
Origination
1.5–3 points
Charged on the total loan commitment, paid at close.
Loan-to-cost
Up to 85%
On total project cost (land + hard + soft). Most disciplined lenders cap experienced builders at 80–85%, first-time investors closer to 70%.
Loan-to-completed-value
Up to 75%
Total loan capped against the appraised value at completion. Protects both sides if the market shifts.
Term length
12–24 months
9–12 months for a standard SFR build, 18–24 months for multi-unit or more complex scope. Built around your construction schedule.
During construction
Interest-only
Payments are calculated only on the drawn balance — small at the start, growing as draws release. Cash-flow friendly.
Who it's for
Bringing a great lot, a great GC, and a clear plan. We'll structure the loan around the GC's track record while you learn the ropes.
Three or more completed builds (or two plus a major rehab) unlocks the best leverage and the most flexible terms.
Building inventory to lease up or sell. We'll line up the construction loan and the take-out so capital recycles cleanly.
The process
Walk through the project, the team, and the budget. We'll structure the loan and confirm the leverage you can expect.
Approved permits and final plans are required before any funds release. We'll coordinate with your GC to time it right.
At close the lender funds the land (or refinances yours) and an initial draw covers site work and mobilization.
Foundation, framing, dry-in, mechanicals, finishes — each phase funds via a draw request and inspection sign-off.
Certificate of occupancy unlocks the take-out: sell the property, refinance into a DSCR rental, or transition to permanent financing.
Where Max lends
Max is licensed for residential lending in Michigan, Florida, and North Carolina, with deep market knowledge in each. Investment-property loans are available across 38 states — ask about yours.
What you'll need
Have these in hand before pre-approval and the process moves fast. Missing something? Max will tell you exactly what's needed and when.
FAQ
No. A first-time investor builder needs a contract with a licensed general contractor whose track record can support the project — the GC's experience effectively underwrites you. Investors with three or more completed builds (or two builds plus a major renovation over $200K) can usually act as their own builder.
You can start the application without final permits in hand, but approved permits and plans are required before any draws release at close or during construction. Most investors apply once permits are submitted and we close once they're approved.
Payments are interest-only and calculated only on the balance that's actually been drawn — not the full loan commitment. Early-stage payments are small (when only land and site work are funded), then grow as draws release. After the certificate of occupancy you exit the loan.
Often yes, through a separate DSCR refinance once construction is complete and the property is rentable. This is the build-to-rent path. We'll line up the take-out alongside the construction loan so the transition is clean.
Florida's 2024 building code mandates hurricane-resistant construction — impact windows, metal strapping, secondary water barriers — which often lowers insurance versus older stock. Builders risk policies typically include named-storm coverage but with a percentage deductible (commonly 2–5% of insured value) rather than a flat dollar amount. We'll connect you with insurance partners who price this correctly.
Plan on 20–25% of total project cost as your equity contribution. Liquidity reserves on top of that are typically $15,000 or 25% of the construction budget — whichever is greater — plus closing costs. Stronger reserves can unlock higher leverage.
Send Max your scope and your numbers. We'll structure the loan, line up the draws, and pre-coordinate your exit financing if you're holding for rent.