Construction Loans for Real Estate Investors
Finance New Builds or Major Renovations with Confidence
Flexible funding for ground-up construction, rebuilds, or heavy rehab projects.
Construction loans are short-term, draw-based loans designed to finance the cost of building or substantially renovating residential investment properties. These loans offer real estate investors fast access to capital — structured to match your project’s phases and timeline.
Get matched with a construction lender in 60 seconds. No tax returns or W-2s required.
🏗️ Why Choose a Construction Loan?
Custom-built financing for builders and investors.
- ✅ Fund land purchase and construction costs
- ✅ Loans up to $5M+ for residential builds
- ✅ Close in as fast as 10–21 days
- ✅ Interest-only during construction
- ✅ Draw schedules matched to build phases
- ✅ Close in LLC, trust, or personal name
Use Case Example: An investor secured a construction loan to finance a duplex development on a vacant lot. The lender approved 75% of total project cost, releasing funds in stages tied to construction milestones. The project was completed and refinanced into a 30-year DSCR rental loan.
🧮 How Construction Loans Work
These loans are typically 6 to 18 months in length, with funds disbursed in phases (draws) as verified construction milestones are completed.
Typical Loan Structure:
- Loan-to-Cost (LTC): Up to 75–85%
- Loan-to-Value (LTV): Based on ARV (after-completion value)
- Funds are released in draws — inspections required for each stage
- Interest-only payments during the construction period
Requirements:
- Detailed construction budget and timeline
- Scope of work (SOW) and contractor license info
- Appraisal with as-completed value
- 10–25% down payment depending on experience and project risk
Construction Loan FAQs
New builds, tear-down/rebuilds, modular homes, ADUs, and heavy renovations.
Yes. Many lenders offer combined financing for lot purchase and construction.
Not necessarily. Some lenders work with first-time builders, especially if using licensed general contractors.
Draws are released in phases after an inspection confirms work completed.
Yes. Most borrowers exit into a DSCR or conventional rental loan once construction is complete.
Get Matched with a Construction Lender Today
See what you qualify for in 60 seconds — no impact to your credit.
Fast. Flexible. Built for real estate investors.
🧠 Want to Learn More First?
- Construction Loans 101: A Beginner’s Guide
- How to Structure a Ground-Up Investment Deal
- Refinancing After a Build: What You Need to Know
