Ground Up Construction Program

What is a Ground Up Construction loan?

A “Ground Up Construction” loan program is designed to provide a streamlined financing solution to build single family, multi-family, and mixed use projects 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 on a new project without waiting on bank financing
  • A contractor who owns entitled or shovel ready land but needs the financing to get the project started
  • A fix & flip project that has extensive rehab requiring vertical additions or significant horizontal additions to the property

At Capital Funding, our Ground Up Construction loans close very quickly… in as little as 17 days at rates starting at 10.49%! Our construction loans require very little documentation instead the underwriting is primarily based on the risk of the project itself! Our Ground Up Construction loans are a great way to acquire property to build a single family spec home or multi-family development. Our ground up construction program provides you with the ability to close quickly by using a reliable & experienced lender as your financing partner.

How does it work?

Investment Criteria

Loan Size$250,000 – $50 Million
Term9, 12, 14, 18, 24 month options
Time to Close28 – 45 Days from Deposit
Asset ClassesSFR (single asset or development), Condo, Townhomes, Multifamily, Mixed Use
LTVLesser of up to 85% LTC or up to 70% of the “as stabilized” Value
Lien PositionSenior secured first mortgage or deed of trust
Interest Rate1 Month SOFR + 400 – 750 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
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

Required Documents

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

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
Plans
Spec Sheet
Survey
GC Bio/Resume
GC License
Pre-Sales (if applicable)
Plat Map
Permits
Valuation (to be ordered)
Title & Insurance Contacts

Personal Documents

Loan Application
Copy of Driver’s License & Passport
Personal Financial Statement
Schedule of Real Estate Owned
Bio/Resume
Last Two Months of All Bank Statements

Business Documents

Last 2 Years of Tax Returns (if applicable)
Entity Documents – Articles of Organization + Bylaws/Operating Agreement
Organizational Chart

APPLY NOW

Get the fastest hard money lender on your side and let Capital Funding fund your dreams.

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