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Ground Up Construction Loan Program

What is a Ground Up Construction loan?

The “Ground Up Construction” loan program is a fast & flexible financing solution for developers and real estate investors to build single family, multifamily, and mixed use properties which are entitled or shovel ready. A Ground Up Construction loan is a great fit in the following situations:

  • For an experienced builder or developer who is looking to capitalize quickly on a new real estate investment project without waiting on traditional lenders or banks
  • A contractor who owns entitled or shovel ready land but needs reliable funding to get the project started without being subject to the rigorous loan terms that come with traditional financing
  • A fix & flip project that has extensive construction costs or rehab requiring vertical additions or significant horizontal additions to the property
  • A new developer or real estate investor who is having a hard time qualifying for traditional financing but has an experienced general contractor signed up for the build with at least 3 “like kind” projects completed to use for the experience requirement

At Capital Funding, our Ground Up Construction loans close very quickly… in as little as 17 days at rates starting at SOFR + 550! Unlike traditional loans, our construction loans require very little documentation instead the underwriting is primarily based on the risk of the project itself. As a direct lender, Capital Funding offers competitive rates and flexible terms you just can’t find when approaching traditional banks.

APPLY FOR A GROUND-UP CONSTRUCTION LOAN

Secure a ground up construction loan quickly for your real estate purchase with Capital Funding, the fastest ground up construction lender. Get approved now and let us fuel your next construction project with speed and ease.

Investment Criteria

Loan Size$500,000 – $50 Million
Term9, 12, 15, 18, 24 month options
Time to Close21 – 45 Days from Deposit
Asset ClassesSFR (single asset or development), Condo, Townhomes, Multifamily, Mixed Use
LTVLesser of up to 85% LTC or up to 75% of the “as stabilized” Value 
Lien PositionSenior secured first mortgage or deed of trust
Interest Rate1 Month SOFR + 550 – 800 BPS
Origination Fees2.00% – 3.50% (adjusted to loan size, timing and complexity)
AmortizationInterest Only
Interest ChargedONLY on Drawn Funds
Minimum Credit Score680 (exceptions on a case by case basis)
PPP / Yield MaintenanceNo prepayment penalty available
RecourseRecourse & Nonrecourse Options with “bad boy” carve outs and Completion Guaranty
“Stabilized” DCR1.25x (only applicable on Multifamily / BTR/ Mixed Use)
Minimum Net Worth & LiquidityNW > LA | Liquidity of 5% – 10% of LA

MAXIMIZE YOUR CAPITAL WITH A GROUND UP CONSTRUCTION LOAN

Our Ground Up Construction loans are a great way to scale your construction business and acquire properties to build a single family spec home or multifamily property in today’s fast-paced real estate market. Our ground up construction program provides you with the ability to close quickly with an experienced and reliable private lender as your financing partner.

SPEAK TO A LOAN OFFICER

Eligible Properties for
Ground-Up Construction Loans

The following property types and real estate asset classes can be eligible for a ground up construction loan.

Single Family

Single Family is classified as one to four-unit residential use dwellings including condominium, P.U.D., townhomes, duplex’s, triplex’s, and quadplex’s. At Capital Funding, we offer money loans to real estate investors and entities looking to purchase, refinance, fix & flip, or buy to rent from $500,000+.

Multi Family

Multifamily properties are a classification of housing where multiple units (5+) for residential use are contained within one or more buildings within one community or complex. At Capital Funding, we will lend to real estate investors looking to purchase or refinance multifamily properties with loan amounts from $500,000+.

Mixed Use

Mixed use is a type of development that blends residential and commercial uses into one integrated complex or building. At Capital Funding, we will lend to real estate investors in the following scenarios: purchase, refinance, bridge to stabilization, bridge to sale, condo conversion, or bridge to construction take out on mixed use projects with loan amounts from $500,000+.

Required Documents

We recommend being prepared to provide the following documentation in order to process this type of loan as efficiently as possible.
DOWNLOAD FORMS NEEDED TO APPLY

Personal Documents

Loan Application
Copy of Driver’s License & Passport
Personal Financial Statement
Real estate portfolio (including rental properties)
Bio/Resume
Last Two Month’s Bank Statements

Property Documents

Purchase Contract or Payoff & Current Mortgage Statement (if applicable)
ProForma Plan to Stabilize the Property with Timeline and Rent Roll (if applicable)
Construction Budget
Building Plans
Spec Sheet
Survey
GC Bio/Resume
GC License
Pre-Sales (if applicable)
Plat Map
Permits
Valuation (to be ordered)
Title & Insurance Contacts

Business Documents

Last 2 Years of Tax Returns (if applicable – not required typically)
Entity Documents – Articles of Organization + Bylaws/Operating Agreement
Organizational Chart

APPLY NOW

Get the fastest construction lender on your side and let Capital Funding maximize your investment profits by scaling your business using our ground up construction loans.

How do ground up
construction loans work?

Why Choose Capital Funding's
Ground Up Construction Loan Program

  • I will use the Capital Funding Financial again in the future on our ground up construction projects. Great team and great service! They were fast and reliable in getting us approved and we closed on time with little to no documentation.

    Shane Strawbridge

  • Capital Funding Financial was a pleasure to work with on our ground up construction project. The closing process was streamlined and the draws post closing were turned around in 2-3 days. I plan on using them for our next ground up construction project.

    Sonia Beverage

Ground Up Construction Loan FAQ's

What type of properties qualify for the Ground Up Construction Loan Program?

The following property types are eligible for our ground up construction loan program:

  • Multifamily properties
  • Mixed Use properties
  • Single Family properties

Note: Land must be entitled or shovel ready; however permits can be trailing at closing.*

What are the typical rates offered by Capital Funding on Construction Loans?

Our construction loans feature rates starting at SOFR + 450 – 800 that are interest only charged only on the drawn amount. All rates are based on three main factors: Loan to Value (LTV); Sponsor or Guarantor Experience and Creditworthiness; and the overall risk and location of the property.

What is the minimum and maximum money loan amount on the Ground Up Construction Loan Program?

We have a minimum loan amount of $500,000 and a maximum loan amount of over 50 Million (However exceptions are granted for low LTV properties that exceed or fall below those requirements)

What states does Capital Funding lend in for construction loans?

We lend on commercial properties Nationwide except for Nebraska, Alaska, Minnesota, North Dakota, Nevada, Oregon, and South Dakota. As a private lender, we have a strong presence and prefer the real estate market in Florida, Texas, Georgia, Tennessee, South Carolina, North Carolina, and the Northeast such as Massachusetts and New York.

What is the minimum FICO score for the Construction Loan Program?

680 Typically. However, if you fall below we can grant an exception based on the overall project risk as well as market conditions.

LET’S GET STARTED

Wondering which program best fits your investment? Speak to a loan officer to get tailored guidance on the best options for your property.

5550 Glades Rd Ste #200,
Boca Raton, FL 33431

866.999.2011

954.320.0242

info@capitalfunding.com