Ground Up Construction
Finance new construction projects from land acquisition through certificate of occupancy.
LOAN RANGE
$500K – $50M
TURNAROUND
2–4 weeks
Best for experienced developers and builders looking to finance new residential or commercial construction projects from land acquisition through completion.
About Ground Up Construction
Ground-up construction loans finance the development of new buildings from land acquisition or vacant lot through completion and certificate of occupancy. Available from $500,000 to $50,000,000, these loans cover residential and commercial construction projects including single-family homes, multifamily apartment buildings, mixed-use developments, commercial buildings, and industrial facilities.
Construction loans are structured differently from traditional mortgages. Instead of receiving the full loan amount at closing, funds are disbursed in stages through a draw schedule that aligns with construction milestones. This protects the lender by ensuring funds are only released as the project progresses. The loan typically includes an interest reserve, which means interest payments during the construction period are funded from the loan proceeds rather than requiring out-of-pocket payments.
Slate Financial works with construction lenders who evaluate projects based on the borrower's development experience, the general contractor's track record, the project's feasibility, and the exit strategy. Whether you plan to sell the completed project, refinance into permanent financing, or hold as a rental property, our team structures the construction loan to align with your investment strategy and timeline.
How It Works
- 1Submit your application with architectural plans, a detailed construction budget, the general contractor's information, proof of land ownership or purchase contract, and your personal financial statements.
- 2The lender evaluates the project feasibility, your development experience, the contractor's qualifications, and the projected completed value or sales comparables.
- 3Upon approval, you receive a commitment letter outlining the loan amount, interest rate, draw schedule, interest reserve, and required milestones. An appraisal is ordered based on the completed project plans.
- 4At closing, the land acquisition (if applicable) is funded and the construction budget is placed in escrow. An interest reserve is set aside to cover interest payments during the build period.
- 5As construction progresses, you request draws at predetermined milestones. An inspector verifies completion of each phase before funds are released. Upon project completion, you execute your exit strategy: sale, refinance into permanent debt, or hold.
Who Qualifies
- Developers and builders with prior construction or development experience (first-time developers considered with strong financials and experienced GC)
- Licensed general contractor in place with a track record of completing similar projects on time and on budget
- Personal net worth at least equal to the loan amount (varies by lender and project size)
- Personal credit score of 680 or higher for the borrower or guarantor
- Detailed construction budget, architectural plans, and a clear exit strategy (sale, refinance, or rental hold)
- Land owned free and clear or under contract to purchase, with all required zoning and entitlements in place or in process
Typical Terms
| Loan Amount | $500,000 - $50,000,000 |
| Interest Rate | 8% - 13% |
| Loan Term | 12 - 24 months (extensions available) |
| LTC (Loan-to-Cost) | Up to 80-85% of total project cost |
| LTV (Completed Value) | Up to 65-70% of projected value |
| Interest Reserve | Typically included in the loan proceeds |
Pros & Cons
Advantages
Considerations
Ready to Apply for Ground Up Construction?
Fill out the application below and a funding advisor will reach out within 1 business day.
Program Highlights
Required Documents
Have these ready to speed up your approval:
Typical Timeline
2–4 weeks
Timeline begins after all required documents are received and verified.