Loan program
Construction loansfor ground-up builds.
Build from the ground up with construction loans designed for experienced developers and builders. Finance land acquisition, vertical construction, and everything in between.
Who it fits
What a construction loanis designed to do.
Ground-up construction loans provide the capital needed to build new residential properties from scratch. These loans cover land acquisition (or refinance of owned land), site preparation, vertical construction, and finishing costs. Construction lending is more complex than standard investment property financing because the collateral does not exist yet — the lender is underwriting based on the plans, permits, budget, and the projected completed value.
This means lenders look closely at borrower experience, contractor qualifications, and the overall feasibility of the project. At AIRE Lending, our construction lending programs are designed for investors and developers. Whether you are building a single spec home or a small subdivision, our construction loan programs provide competitive rates, structured draw schedules, and the flexibility to fund projects from land acquisition through certificate of occupancy.
Experienced builders who deliver projects on time and on budget will find some of the most competitive construction financing available in the private lending market.
This program fits
- Experienced builders and developers constructing new residential homes
- Investors building spec homes for sale in growing markets
- Developers constructing small multi-unit projects (duplexes through 8-plexes)
- Builders doing tear-down and rebuild projects on existing lots
- Land owners who want to build and sell or build and rent
Terms at a glance
The numbers,before the paperwork.
Illustrative program ranges, not a current rate quote or offer. Your terms depend on credit profile, experience, the property and leverage, and are confirmed in underwriting. This is not a commitment to lend.
- Interest rate
- 10.0% - 13.0%
- Origination points
- 2% - 4.5%
- Leverage
- Up to 85% LTC
- Term
- 12 - 24 months
- Loan amount
- $150K - $5M
- Minimum credit score
- 660+
- Credit pull at application
- Soft pull only
- Entity required
- Yes (LLC, corporation or trust)
What we'll ask for
What to have readyfor a construction loan.
Credit and experience
- Minimum credit score: 660+
- Experience: 2+ completed ground-up projects or major rehabs strongly preferred
Eligible property types
- Single-family new construction
- Townhomes
- Duplexes and small multifamily
- Tear-down and rebuild
- Vacant land (with approved plans and permits)
Additional notes
- Approved architectural plans and building permits typically required before closing
- Licensed general contractor required (or borrower must be a licensed builder)
- Detailed construction budget with line-item breakdown
- Personal guaranty required from all members/principals
- Higher liquidity reserves required (typically 10-20% of total project cost)
- Builder's risk insurance required throughout construction
- Experience is heavily weighted — first-time builders may face stricter terms
Questions, answered
Construction loans,explained.
How much experience do I need for a construction loan?
Most construction lenders prefer borrowers with at least 2-3 completed ground-up projects or major renovations. Experience is one of the most important factors in construction lending because the lender needs confidence that you can deliver the project on time and on budget. First-time builders may be considered with a strong licensed general contractor, excellent credit, and higher reserves.
Can I be my own general contractor?
Some programs allow owner-builders if you hold an active general contractor license and can demonstrate construction management experience. Other programs require an independent licensed GC. We structure the loan around your project setup and who is managing the build.
How does the draw schedule work for construction loans?
Construction loans fund in stages (draws) as you complete project milestones — typically foundation, framing, mechanical (plumbing/electrical/HVAC), drywall, and finish. Before each draw, a licensed inspector visits the property to verify completed work. Once approved, funds are released within 3-5 business days. We typically hold back 10% of each draw until final completion.
Do I need plans and permits before applying?
You can start the pre-qualification process before permits are in hand, but most lenders require approved plans and permits before closing the loan. Having plans and a detailed budget ready when you apply will significantly speed up the process.
What happens if the project goes over budget?
Construction cost overruns are one of the biggest risks in ground-up building. Most lenders will not increase the loan amount after closing, so you need to cover overruns out of pocket. We strongly recommend building a 10-15% contingency into your construction budget to account for unexpected costs.
Can I finance the land purchase as part of the construction loan?
Yes. Most construction loan programs include land acquisition as part of the total loan-to-cost calculation. If you already own the land, you can typically receive credit for your equity in the land as part of the project financing. The combined loan (land + construction) is subject to overall LTC and ARV limits.