How fast can I get a business loan?

With Slate Financial, many business loans fund in as little as 24 hours. MCAs and lines of credit can fund same-day. Term loans typically fund in 24-72 hours. Real estate loans range from 5 days to 4 weeks depending on the product.

Can I get a business loan with bad credit?

Yes. Products like MCAs, MCA Bailouts, and Lines of Credit are primarily based on your business revenue, not your personal credit score. If your business generates consistent monthly revenue ($10K+/month), you likely qualify for funding.

What types of business loans does Slate Financial offer?

Slate Financial offers 14 loan products including Term Loans, Lines of Credit, Merchant Cash Advances, MCA Bailout, 0% Interest Business Credit Cards, Equipment Financing, Purchase Order Factoring, Commercial Real Estate Loans, Residential Mortgages, DSCR Loans, Fix and Flip Loans, Ground-Up Construction Loans, Mergers & Acquisitions Financing, and Form 1003 Mortgage Applications.

Does applying for a business loan affect my credit score?

No. Slate Financial's initial application uses a soft inquiry that does NOT impact your credit score. A hard pull is only done after you've reviewed and accepted a specific offer from a lender.

A DSCR (Debt Service Coverage Ratio) loan allows real estate investors to qualify based on the property's rental income rather than personal income. If the property's rent covers the mortgage payment, you can qualify without providing pay stubs, W-2s, or tax returns.

How does a construction loan work?

A construction loan provides financing to build a new structure or complete a major renovation. Unlike a traditional mortgage where you receive the full loan amount at closing, construction loans disburse funds in stages called draws. As each phase of construction is completed and inspected, the lender releases the next portion of funds. You typically pay interest only on the amount that has been drawn during the construction period. Once construction is complete, the loan either converts to a permanent mortgage (construction-to-permanent) or is paid off through a separate permanent loan or sale of the property.

What is a draw schedule in construction lending?

A draw schedule is the plan that outlines when and how construction loan funds are disbursed throughout the building process. Before construction begins, the lender and borrower agree on specific milestones that trigger each draw. Common draw points include completion of foundation, framing, mechanical rough-in, interior finishes, and final completion. At each milestone, the lender sends an inspector to verify the work is done, and then releases the funds for that phase. The draw schedule protects the lender by ensuring money is only released for completed work.

Do I need a general contractor to get a construction loan?

Most construction lenders require a licensed and insured general contractor to manage the build. The GC's qualifications, experience, license status, insurance coverage, and track record are all evaluated as part of the loan application. Some lenders allow owner-builders (where the borrower acts as their own GC), but this is less common and usually requires the borrower to demonstrate significant construction experience. Having a qualified GC with a strong resume makes it easier to qualify and often results in better loan terms.

Can I include the land purchase in my construction loan?

Some construction loans include financing for the land purchase as part of the total loan package, while others require you to own the land free and clear before applying. If you already own the land, its value is typically counted as your equity in the project. If you need to purchase the land, there are lenders who offer combined land acquisition and construction financing in a single loan. The structure depends on the lender, the project size, and whether the land is already entitled and ready for construction.

How long does a construction loan last?

Construction loans are short-term by nature, typically lasting 12 to 24 months depending on the scope and complexity of the project. The loan term is set based on the projected construction timeline plus a buffer for potential delays. If construction takes longer than expected, most lenders offer extension options, though these usually come with additional fees. Once construction is complete, the borrower either refinances into a permanent mortgage, sells the property, or the loan converts automatically if it was structured as a construction-to-permanent loan.

Ground Up and New Construction Financing

Construction Loans - Build From the Ground Up

Financing for new construction, ground up builds, and major renovations. Slate Financial connects builders and developers with construction lenders who understand draw schedules, GC requirements, and the unique needs of building projects.

Apply for Construction Financing (843) 290-8928

Ground Up Builds

Draw-Based Funding

Residential and Commercial

Ground Up

New Construction

$250K+

Loan Amounts

12-24 Mo

Typical Terms

Draw

Based Funding

Understanding Construction Financing

What Is a Construction Loan?

A construction loan is a short-term financing product designed to fund the building of a new structure or a major renovation project. Unlike a standard mortgage where the full loan amount is disbursed at closing, construction loans release funds in phases through a draw schedule as the building progresses. This structure ensures that money flows to the project as work is actually completed.

Construction loans are available for a wide range of project types including custom homes, spec homes built for resale, multifamily developments, commercial buildings, and major renovations that involve structural changes. The loan covers hard costs (materials, labor, site work) and in many cases soft costs (architectural plans, engineering, permits, inspections).

During the construction period, borrowers typically pay interest only on the amount that has been drawn. Once construction is complete, the loan either converts to a permanent mortgage, is refinanced into a long-term loan, or is paid off through the sale of the completed property. Slate Financial works with construction lenders across the country who finance residential and commercial builds for both experienced developers and first-time builders.

Loan Programs

Types of Construction Loans

Different construction projects require different loan structures. Here are the main programs available through Slate Financial.

Ground Up Construction Loans

Financing for building a new structure from the ground up on vacant land or a demolished site. These loans cover land acquisition (in some cases), site preparation, materials, labor, and all construction costs through to completion. Funds are disbursed through a draw schedule as construction milestones are reached.

Best for: New residential or commercial builds on vacant or cleared land

Construction-to-Permanent Loans

A single-close loan that converts from a construction loan to a permanent mortgage once building is complete. This eliminates the need to apply for and close on two separate loans, saving time and closing costs. The borrower locks in their permanent financing terms before construction begins.

Best for: Owner-occupants building a custom home or small commercial building

Renovation Construction Loans

Financing for major renovations that go beyond a standard rehab. These loans cover gut renovations, additions, structural changes, and projects where the scope of work is significant enough that the property is essentially being rebuilt. The process mirrors ground up construction with a draw schedule and inspections.

Best for: Major renovations, gut rehabs, and structural additions

Spec and Build-to-Rent Construction

Financing for builders and developers constructing speculative homes for sale or rental properties built specifically to be leased. Spec construction loans are common among experienced builders who construct homes in advance of a buyer. Build-to-rent financing is a growing segment as demand for new rental housing increases.

Best for: Experienced builders, spec home construction, and build-to-rent projects

Draw Schedule

How the Construction Draw Schedule Works

Construction loans fund in phases. Here is a typical draw schedule for a residential ground up build.

Phase 1: Site Work and Foundation

Includes land clearing, grading, utility connections, foundation excavation, footings, and foundation walls or slab. The first draw is released after the foundation is poured and inspected.

Phase 2: Framing and Rough-In

Covers structural framing, roof sheathing, windows, exterior doors, and rough plumbing, electrical, and HVAC installation. Draw is released after framing inspection passes.

Phase 3: Mechanical and Insulation

Includes completion of all mechanical rough-ins (plumbing, electrical, HVAC), insulation installation, and exterior siding or cladding. Inspections verify all systems are properly installed.

Phase 4: Interior Finishes

Covers drywall, painting, flooring, cabinets, countertops, trim, fixtures, and appliance installation. This phase transforms the structure into a finished, livable space.

Phase 5: Final Completion

Includes landscaping, driveway, final grading, punch list items, final inspections, and certificate of occupancy. The final draw is released after all work is complete and inspected.

Requirements

What Construction Lenders Require

Construction loans have specific requirements beyond traditional financing. Here is what you need to prepare.

Detailed Plans and Specifications

Complete architectural plans, engineering drawings, and a detailed scope of work that outlines every aspect of the construction project. Plans must be approved by local building authorities.

Licensed General Contractor

Most construction lenders require a licensed, insured general contractor (GC) with a proven track record. The GC's resume, license, insurance certificates, and references are all part of the lender's review.

Detailed Construction Budget

A line-item budget that breaks down every cost category: site work, foundation, framing, mechanical, finishes, fixtures, landscaping, permits, contingency, and any soft costs like architecture and engineering fees.

Construction Timeline

A realistic project timeline showing the expected duration of each phase of construction. Lenders use this to structure the draw schedule and set loan maturity dates. Delays beyond the maturity date can trigger extension fees.

Land Ownership or Purchase Agreement

If you already own the land, you will need to provide proof of ownership and the land value. If you are purchasing land as part of the project, the purchase agreement and land appraisal are required.

Borrower Experience and Financial Strength

Your experience with construction or development projects, personal credit history, net worth, and liquidity all factor into the lender's decision. More experienced builders qualify for better terms and higher leverage.

How It Works

How to Apply for a Construction Loan

Slate Financial simplifies construction financing. Here is how to get your project funded.

Submit Your Project

Tell us about your construction project including the location, type of build, estimated budget, and timeline. Share your plans and GC information if available.

Project Evaluation

Our team reviews your construction plans, budget, GC qualifications, and borrower profile to assess the deal and identify the best lending options.

Lender Matching

We match your project with construction lenders who specialize in your property type, loan size, and geographic area for the most competitive terms.

Approval and First Draw

Once approved, the lender sets up the draw schedule, funds the initial disbursement, and you break ground on your project.

Explore other financing options:

Fix and Flip Loans DSCR Loans Commercial Real Estate Loans SBA Loans Business Loans Equipment Financing

FAQ

Frequently Asked Questions About Construction Loans

Get answers to the most common questions about construction financing, draw schedules, and the building loan process.

Ready to Finance Your Construction Project?

Slate Financial connects you with construction lenders who understand ground up builds, draw schedules, and builder requirements. Apply online or call to discuss your project.

Apply Now (843) 290-8928