Ground Up Construction Loans | New Build Investor Financing | Convoy Home Loans

What Is a Ground Up Construction Loan?

A Ground Up Construction Loan is a short-to-medium-term financing solution that funds the entire construction of a new 1-4 unit residential property, including labor and materials.

These loans are designed exclusively for investors and are based on the project's after-completion value rather than the borrower's personal income.

Program Highlights:

Property Type: 1-4 unit residential properties · Land: Must be owned free and clear with permits issued by closing · Occupancy: Investor only · Lending Area: Nationwide · Minimum Loan Amount: $150,000+ · Loan-to-Cost (LTC): Up to 85% · Experience Required: Minimum 3 construction projects in the last 3 years (at least one must be Ground Up Construction) · Income Documentation: Not required

Key Benefits of Ground Up Construction Loans

High LTC up to 85%

Finance most of the construction costs with less capital tied up.

No Income Documentation

Qualification based on the project, your experience, and exit strategy.

Nationwide Availability

Build in any market across all 50 states.

One-Time Close Option

Some programs allow conversion to permanent financing upon completion.

Fast Draw Schedule

Funds released in stages as construction milestones are met.

Investor-Focused

Designed for building rental properties, short-term rentals, or spec homes for sale.

Potential Drawbacks

Strict Experience Requirements

Must have completed at least 3 projects in the last 3 years (including one ground-up).

Higher Interest Rates

Short-term construction loans typically carry higher rates than permanent mortgages.

Permits & Land Ownership Required

Land must be owned and all permits issued before closing.

Construction Timeline Risk

Delays can increase holding costs and interest.

Exit Strategy Needed

Lenders require a clear plan (sell, refinance into DSCR, etc.).

Who Should Consider Ground Up Construction Financing?

This program is ideal for:

Seasoned real estate investors with proven ground-up construction experience

Builders creating new rental or short-term rental inventory

Investors who already own entitled land ready for construction

Those looking to build 1-4 unit properties nationwide

Experienced flippers expanding into new construction

High-net-worth individuals seeking custom-built investment properties

How a Ground Up Construction Loan Works

Pre-Approval

We review your construction experience, plans, budget, and ARV.

Land & Permits

You must own the land free and clear with all permits issued.

Closing

Initial funds disbursed to begin construction.

Construction Phase

Funds released in controlled draws based on inspection milestones.

Completion & Exit

Project completion followed by sale or refinance into a long-term loan (DSCR, etc.).

Our team works closely with you and the lender to keep the draw process efficient and transparent.

Ground Up Construction vs. Other Investor Options

Loan Type	Purpose	LTC / LTV	Experience Required	Term	Income Docs
Ground Up Construction	New Build from Scratch	Up to 85% LTC	High (3 projects)	12-24 months	None
Bridge Loan with Rehab	Purchase + Renovation	Up to 90% LTC	Moderate	6-18 months	None
Investor X (DSCR)	Purchase Existing	75-80% LTV	Low	30 years	None
Short Term Rental	Purchase Existing STR	75-85% LTV	Low	30 years	Minimal

Why Choose Convoy Home Loans for Your Ground Up Construction Project?

As a nationally licensed mortgage broker (NMLS #2130517) with offices in San Diego and El Segundo, we have strong relationships with specialized construction lenders across the country. Our mission is to provide financing options that enhance your standard of living while treating you like family.

We understand the complexities of ground-up construction and deliver the expertise and speed experienced investors demand.

Ready to build new investment properties from the ground up? Get pre-approved today - no obligation.

Frequently Asked Questions

What property types qualify for ground up construction loans?

1-4 unit residential investment properties only.

Do I need to own the land already?

Yes - the land must be owned free and clear and all permits must be issued by closing.

What are the experience requirements?

You must have completed at least 3 construction projects in the last 3 years, with at least one being a ground-up construction project.

Is income documentation required?

No - these loans do not require personal income verification or tax returns.

Is this program available nationwide?

Yes - we can finance ground-up construction projects in all 50 states.

What is the minimum loan amount?

$150,000 and above.

What happens after construction is complete?

You can sell the property or refinance into a permanent loan such as Investor X (DSCR) or a traditional investment mortgage.

Convoy Home Loans · NMLS #2130517 · Licensed Mortgage Broker
AZ · CA · CO · FL · GA · ID · MD · MI · MN · NC · NM · OH · OR · PA · TN · TX · VA · WA and more
This is not a commitment to lend. All loans subject to credit approval. Equal Housing Lender.

Ground Up Construction Loans | New Build Investor Financing Nationwide with Convoy Home Loans