If you’re looking to expand your loan offerings, ground-up construction financing is a good place to start. It’s not something most brokers handle, but for the right clients, it can be the perfect fit, especially with new residential construction continues to play a role in easing inventory challenges, even with recent month-to-month fluctuations.
In a market where speed and deal structure matter more than ever, having a solution like this can help you stand out, and keep clients coming back.
WHAT IS GROUND UP CONSTRUCTION FINANCING?
Ground-up construction financing is designed to support real estate investors and builders who are developing new structures from the ground up. This type of loan typically covers both the land purchase and the construction costs and is disbursed in stages based on progress milestones.
Unlike renovation or fix and flip loans, ground up construction financing is for new builds, from single-family homes to small multi-unit properties, where no existing structure is in place.
WHEN GROUND UP CONSTRUCTION FINANCING IS IDEAL
Our ground up construction financing program isn’t for first-time builders. It’s tailored for experienced investors who have:
- A proven track record of three completed new builds, or
- Two completed builds plus a major renovation valued over $200,000
These loans are well-suited for:
- Spec home construction in competitive resale markets
- Build-to-rent projects targeting long-term rental income
- Clients who already own land and want to fund the build
- Clients who are purchasing land and want to finance the full project
Brokers should consider recommending this type of financing when:
- Traditional lenders are declining due to LLC ownership or complex income
- The borrower needs flexible payment options and staged funding
- The market has limited inventory and strong buyer/renter demand
KEY DETAILS OF LENDSURE’S GROUND UP CONSTRUCTION FINANCING
At LendSure, we built our ground up construction financing program to eliminate the friction builders face with traditional loans. Here are the core program features brokers should know:
Financing Scope
- Up to 60% of the lot purchase price
- Up to 85% of construction costs
- Loan origination fees can be financed into the loan
Flexible Terms
- Choose between 12- or 18-month interest-only terms
- Borrowers can delay the first payment for up to 5 months by financing the interest payments into the loan
Ownership Structure
- Loans can close in an LLC or a business entity
- Cross-collateralization is allowed (multiple properties can be used as security)
Draw Process
- Funds are disbursed through a holdback draw process
- Each draw is tied to construction milestones
- Third-party inspections are required before funds are released
- Typical draw inspection fees range from $150–$250
Credit & Documentation
- Minimum credit score: 680
- No traditional income documentation is required (However, LendSure may inquire about recent income trends)
- General Contractor (GC) license required
- Local permits must be obtained to ensure code compliance
- Project plans and budget must be submitted for underwriting
THE LOAN PROCESS: WHAT BROKERS SHOULD EXPECT
LendSure’s process is designed for efficiency, giving brokers the tools to move deals forward without getting bogged down in red tape.
- Pre-Qualification (Typically within 24 hours)
After reviewing builder experience, credit, assets, and project scope, we provide fast feedback to help you position the deal.
- File Submission
You’ll submit construction plans, budget, permits, contractor details, and borrower documentation (including experience history and entity info if applicable).
- Underwriting and Loan Structuring
We assess the full file, project viability, borrower profile, and risk factors to determine competitive pricing. If the borrower doesn’t fully meet all standard criteria, Dutch Interest may be used as a compensating factor.
- Closing
Once approved, the loan typically closes within 25 to 45 days, depending on documentation readiness and local permitting timelines.
- Construction and Draws
Funds are released in phases as construction progresses. Each draw requires a third-party inspection before funds are released.
WHY BROKERS CHOOSE LENDSURE FOR GROUND UP CONSTRUCTION LOANS
By working with LendSure, you’re able to serve a segment of experienced investors that often gets overlooked. Traditional banks typically shy away from these loans or layer on strict requirements that make it hard for builders to qualify. That’s where you come in.
You can step in with a financing solution when others can’t. Here’s what you gain by offering our ground up construction financing program:
- Access to a niche financing product many lenders avoid
- A faster, more flexible option than traditional banks
- The ability to work with entity-owned properties
- Opportunities to support repeat investor clients
- A streamlined pre-qual process and strong lender support team
This program positions you as a strategic partner, not just a loan source. You’re helping your clients grow smarter, one project at a time.
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 ground-up construction loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
