New Construction
Ground-Up Construction Loan Requirements
Prepare the property, budget, permit, experience, and exit information needed for a construction-loan review.
A ground-up construction review starts with the land, plans and permit status, detailed construction budget, completed value, development experience, requested leverage, and exit.
Before You Submit
- Land basis and ownership
- Plans and permits
- Line-item construction budget
- Completed value support
- Comparable project experience
- Equity and liquidity
- Sale or refinance exit
Why Experience Changes the Structure
Current working guidelines distinguish a standard path from an experienced-developer path. Comparable completed projects can affect leverage, term, and the number of properties in the structure.
From land review to construction draws
The initial review considers land ownership or purchase terms, plans, permits, budget, and completed value. After closing, construction funds may be released through an agreed draw process. Confirm inspection requirements, reimbursement timing, and which expenses you must cover before a draw.
Plan the repayment before breaking ground
A construction loan has a defined term. Support a sale exit with market evidence or a refinance exit with a realistic permanent-financing plan. Include schedule contingency and explain what happens if construction or sale takes longer than expected.