Tailored Ground-Up Construction Loans: Your Blueprint to Building Success

What is a GROUND-UP
CONSTRUCTION LOANS?

Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.

At Equity Lending Solutions, we tailor our programs to your experience and your project.

What is a GROUND-UP
CONSTRUCTION LOANS?

Ground-up construction loans are designed to provide experienced builders and investors with the financing they need to start from scratch and acquire land, offering flexibility in assessment and a fast closing process that isn't available with conventional financing.

At Equity Lending Solutions, we tailor our programs to your experience and your project.

Ground up Construction Terms

PROPERTY TYPE

Homes with 1-4 Units (5 units and above on a case-by-case basis)

Loan Amount

US$ 100K to US$ 3M (Up to 1US$ 0M subject to longer approval time)

TYPE OF LOAN

Interest only short term loan with a balloon payment at maturity.

MAXIMUM LOAN TO COST

85%

MAXIMUM LOAN TO ARV

N/A

MAXIMUM LOAN TO VALUE

70%

Term Length

Up to 18 months + 6 months extension

BASE RATE

9.5% (Interest-only payments on disbursed amount)

MINIMUM FICO SCORE

700

PREPAYMENT PENALTIES

NO PREPAYMENT PENALTIES

FOREIGN NATIONALS ACCEPTED

+ 0.25 to base rate

EASY DRAW PROCESS

REQUIREMENTS

  • Experience on 3 previous projects (constructions & rehab)
  • Latest three months bank statements
  • ID, passport, (US visa for foreign nationals)
  • Entity Documents (LLC or Corp), EIN & OP Agreement
  • Rehab budget (if applicable)
  • 6 months liquidity/reserves
  • Non-owner occupancy certification
  • SSN for credit report and background check
  • Evidence of insurance (full replacement + 500K liability) & builder’s risk insurance (if applicable)
  • Signed loan application

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FAQ

Can I finance just the land purchase and then use my own funds for the construction?

We do not offer financing solely for land acquisition unless there’s a commitment to subsequently finance the construction on that land.

What if I can't sell the property immediately after construction and wish to keep it?

If you’re unable to secure a quick sale or choose to retain the property, you can transition to a DSCR Loan which is a loan long-term financing solution with more favorable terms and extended durations.

How do you manage disbursements during the various construction stages of a "Ground Up Constructions" loan?

Disbursements are executed after the completion of the work. An assigned inspector will evaluate the property, and upon their approval, the agreed-upon amount will be disbursed.

What happens if project permits get delayed and the loan's due date is approaching?

We understand that construction projects can face unforeseen challenges. In such scenarios, you can request a loan extension of up to 6 months.

Are there any penalties for early payments or settling the "Ground Up Constructions" loan ahead of schedule?

No. At Equity Lending Solutions, we don’t impose any penalties for early payments or for settling the loan before its due date.

What happens if the project's cost surpasses the initial budget during construction?

You can apply for refinancing through another Ground Up Constructions loan.