Ground-Up Construction Loans in Florida, Texas, Georgia, and South Carolina: Fund Your Spec Home Without a Bank

Why Your Bank Stopped Doing Ground-Up Construction Loans

If you have been shopping for a ground-up construction loan in 2026, you have probably heard some version of this: “We have paused our construction lending program.” Banks across Florida, Texas, Georgia, and South Carolina quietly stepped back from residential construction financing after 2022 – and most have never returned.

It is not a temporary policy. It is structural. Construction lending requires a bank to disburse funds in stages over an 18-to-24-month build cycle, carrying risk on an asset that does not exist yet. Most community banks decided that exposure did not fit their current book. And they do not advertise it – you just find out when your application goes quiet.

Private lenders made the opposite decision. They stayed in the construction space, built underwriting expertise around draw schedules and as-completed value, and are actively lending to spec home builders and developers right now.

How Private Ground-Up Construction Loans Work

A private construction loan is structured around the build, not your W2. Here is the basic framework:

• Loan amount: Typically 60-75% of the as-completed value (ACV) – what the home will be worth when construction is finished. Lenders underwrite the deal, not your income history.
• Draw schedule: Funds are released in 4-6 stages tied to construction milestones – foundation, framing, rough-in, drywall, and completion. An inspector confirms progress before each draw is wired.
• Term: Usually 12-18 months. Long enough to cover the build plus a buffer for delays.
• Speed: Private lenders can close in 2-4 weeks. Banks, when they were doing construction loans at all, took 60-90 days. For a builder with a lot under contract and a GC ready to go, that speed difference is the deal.
• Qualification: Lenders focus on the deal: the land value, the construction budget, the finished value, and your experience. They look for deals that pencil, not W2s that check a box.

If your total cost to build – land plus construction – is well below the as-completed value of the finished home, you have a deal that works. A private lender can move on it.

Apply for a ground-up construction loan at Slate Financial – takes 3 minutes.

Markets We Are Active In

Slate Financial covers most major U.S. markets, with particularly strong lender coverage in four high-growth states:

• Florida: Tampa, Orlando, Jacksonville, Fort Lauderdale, and surrounding metros. Strong demand for new spec inventory continues.
• Texas: Dallas-Fort Worth, Houston, Austin, San Antonio. Private construction lending is the primary source of financing for many spec developers here.
• Georgia: Atlanta metro and surrounding suburban markets with consistent population growth and new-construction demand.
• South Carolina: Charleston, Myrtle Beach, Greenville, and the I-85 corridor. Migration-driven demand for new construction is among the strongest in the Southeast.

If you are building outside these four states, reach out. Our network is broader than this list and we may have the right lender for your deal regardless of location.

What Lenders Actually Look At vs. What Banks Want

The practical difference in underwriting between a bank and a private construction lender:

• Banks: 3 years W2/tax returns. Private lenders: deal-level underwrite (ACV vs. cost).
• Banks: 60-90 day approval process. Private lenders: 2-4 week close.
• Banks: required stabilized income history. Private lenders: experience plus licensed GC accepted.
• Banks: full appraisal of completed structure before funding. Private lenders: ACV estimate at underwrite.
• Banks: construction committee review. Private lenders: underwriter decision, no committee.

Private construction lenders built their process around spec builders, not salaried borrowers. That is the core difference.

Understanding the Draw Schedule

The draw schedule is the part of a construction loan that trips up first-time borrowers. Here is what you need to know:

• You do not receive all the money at closing. The full loan amount sits in a construction reserve. Funds are released in stages as milestones are verified.
• Each draw requires an inspection. The lender confirms the milestone is complete before wiring the draw. Budget 5-7 business days from inspection to wire.
• Your contractors need to work on a milestone basis. If you pay your GC in full before a draw is released, you will have a cash flow gap. Structure your contracts with milestone-based payments that align with the draw schedule.
• Typical draw sequence: land/permits/mobilization – foundation – framing/roof – rough-in (MEP) – drywall/finishes – certificate of occupancy.

Builders who have done bank construction loans before will find private lender draws work the same way – just faster and with far less back-and-forth at each milestone.

Who This Is Right For

Private ground-up construction lending is a strong fit if:

• You own land or are acquiring land to build a spec home on
• Your bank declined your construction loan application or does not offer the product
• You need to close faster than bank timelines allow
• You are self-employed or your tax returns do not reflect your actual financial position
• You have construction experience, or you are working with a licensed GC who does

Start Your Application

If you have a ground-up project – a lot, a plan, and a deal that pencils – we can help you find the right lender. The application takes about 3 minutes and there is no commitment to move forward.

Apply for a ground-up construction loan at Slate Financial.

Funding is subject to lender approval. Slate Financial is a lending marketplace that connects borrowers with third-party lenders. Results not typical. Individual deal outcomes vary based on lender appetite, borrower qualifications, property characteristics, and market conditions.

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