Ground Up Construction
A ground-up construction loan is specialized financing for new property construction, covering costs like land acquisition, materials, and labor. Funds are released incrementally based on project milestones, often with interest-only payments during construction. Borrowers can convert it to permanent financing when construction is complete. Typically used by developers and builders, it requires expertise and uses the property as collateral.
Loan Term: 5-10 year with 15-25 year Amortization
Days to Closing: 4-8 weeks