
How Ground-Up Construction Loans Work
Traditional financing often presents challenges for builders since they require substantial cash reserves, undervalue paid-off lots as assets, and refrain from reimbursing lot purchases. Plus, smaller builders may not meet their criteria.
LendSure’s Ground-Up Construction loan program fills this gap, offering flexible, builder-centric terms that make sense for new builds.
How Ground-Up Construction Loans Work and Who Are They For?
Ground-Up Construction loans provide comprehensive funding for building projects, covering every stage, including purchasing land and constructing a new structure. This type of financing is ideal for builders and investors prepared to tackle projects from scratch.
LendSure’s program specifically targets experienced builders, requiring a proven track record of three new builds or a combination of two builds and a major renovation costing over $200,000.
Key Benefits of LendSure’s Ground-Up Construction Loans
LendSure’s Ground-Up Construction loans stand out by offering builders and developers unique advantages tailored to their project needs:
- End-to-End Financing: Unlike traditional mortgages limited to completed properties, Ground-Up Construction loans cover the entire project lifecycle. This approach eliminates the need for multiple loans, simplifying project management for builders.
- Flexible Payment and Term Options: Borrowers can delay their first payment for up to five months by stacking the initial four months of interest payments into the loan. Plus, they can choose between 12- or 18-month interest-only terms to align with their cash flow and project timeline needs.
- Simplified Documentation Requirements: Qualifying is straightforward, with no income documentation required. This reduces paperwork hassles and allows builders to focus on what they do best—building.
- SPEC and Build-to-Rent Financing: LendSure supports a variety of building scenarios, including SPEC builds for sale and build-to-rent projects.
How the Ground-Up Construction Loan Works: LendSure’s Loan Process
Here’s what your clients can expect when applying for a LendSure Ground-Up Construction loan:
- Pre-Qualification and Builder Assessment
Builders must demonstrate their experience through completed projects. This initial step lays the groundwork for loan approval. - Documentation Requirements
Detailed project plans, budgets, and contractor agreements must be submitted as part of the loan process. LendSure helps simplify this step, making sure all necessary documents are in order. - Milestone-Based Draw Schedules
Funds are released incrementally, based on specific construction milestones. This structured system keeps projects on track, provides financial accountability, and mitigates risk.
A Few LendSure Ground-Up Construction Loans FAQs
Q: What is the minimum credit score required?
A: 680 is the minimum credit score needed to qualify for our Ground-Up Construction loans.
Q: Can these loans close in an LLC or business entity?
A: Yes, our loans offer flexibility by allowing borrowers to close in an LLC or business entity.
Q: Are permits required?
A: Yes, obtaining permits from the relevant local authority is necessary to ensure all regulatory compliance.
Read more FAQs here.
Add Ground-Up Construction Loans To Your Loan Toolkit
LendSure’s Ground-Up Construction loans are here to help experienced builders launch their projects with ease. With flexible terms, competitive rates, and a focus on success, these loans make complex projects more manageable.
Adding this to your offerings lets you stand out, helping you provide unique value and build lasting client relationships. As projects progress from construction to the final structure, your financing can grow with their needs, creating opportunities for long-term success and repeat business. Learn more about our program here.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.