Do I need permits before applying?

To get real terms, effectively yes. Approved plans and issued permits are what move a project from concept to fundable. We will talk to you earlier than that, but the answers will be general.

Can a first-time builder get funded?

It is the hardest case on this product. Expect more equity, lower leverage, or an experienced general contractor or partner attached to the project.

Is the land purchase included?

Sometimes, depending on the lender and whether you already own the lot. Tell us which situation you are in, because it changes the structure.

Ground-Up Construction Loans for Builders

What a construction lender is really assessing

Three things, in roughly this order: whether the build can be completed for the stated budget, whether the person running it has done it before, and what the finished property will be worth in that market.

The builder

Completed comparable projects matter more than anything else in the file. A first-time builder on a speculative build is the hardest version of this loan.

The budget

Line-itemed, with contingency, priced at current material costs rather than last year's.

Plans and permits

Approved plans and issued permits turn a concept into a fundable project. Pre-permit enquiries are conversations, not applications.

Exit value

Comparable finished sales, allowing for the time the build will take.

How draws work, and where builders get caught

Funds are released in stages as work is completed and verified — foundation, framing, mechanicals, finishes. Nobody hands over the build cost at closing, and the gap between paying trades and receiving the draw is the most common cash-flow squeeze on these projects.

Inspection-gated releases

Each draw needs verification. Build the lag into your schedule.

Retainage

Expect a portion held back until completion.

Change orders

Deviating from the approved budget mid-build has consequences for the draw schedule. Raise changes before making them.

Timeline honesty

Construction schedules slip for reasons outside anyone's control: inspections, weather, a trade that does not show. A term written against an optimistic schedule becomes a problem in the final months, so pad the timeline at the application stage where it is cheap to do.

Permits and utilities

Frequently the longest unpredictable stretch, and often before a single trade arrives.

Material lead times

Long-lead items should be ordered against the schedule, not discovered late.

Nothing gets priced before these exist

Construction is the one product where an early enquiry genuinely cannot be answered precisely. Until plans are approved and permits issued, any number is a guess.

Approved plans, and permits issued rather than applied for.
A line-itemed build budget with contingency, at current pricing.
The builder's completed comparable projects, with addresses.
A draw schedule matched to the build sequence.
Whether you own the lot already, and what you paid for it.
Comparable finished sales allowing for how long the build will take.
Confirmation that utilities can be brought to the lot, and what that costs — on raw land this is frequently the item that moves a budget most after funding.
The general contractor's licence and insurance, plus who carries the builder's risk policy.

Tell us about this deal

No fee to submit it, and no obligation once terms come back.

Questions investors ask about this product

Do I need permits before applying?: To get real terms, effectively yes. Approved plans and issued permits are what move a project from concept to fundable. We will talk to you earlier than that, but the answers will be general.
Can a first-time builder get funded?: It is the hardest case on this product. Expect more equity, lower leverage, or an experienced general contractor or partner attached to the project.
Is the land purchase included?: Sometimes, depending on the lender and whether you already own the lot. Tell us which situation you are in, because it changes the structure.

Before you apply

We are a connector, not the lender. We place your deal with private and hard money lenders who fund this profile; they underwrite it, approve it and set the terms. We will not quote a rate, points or leverage before a lender has read the file, and we do not use the word approved. If the deal does not fit private lending, we would rather tell you on the first call — see how the process works for the short version.

Ground-up construction finance, released against real progress