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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

Potential Drawbacks

Who Should Consider a 15-Year Fixed Mortgage?

This program is ideal for:

How a Ground Up Construction Loan Works

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

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

Typically 30-50% higher than a 30-year loan, depending on rate and loan amount. We'll run exact numbers for you.

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

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

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

$150,000 and above.

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

Real Estate Investor Lending · 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.