Spec construction
Eligibility and structure depend on the complete borrower, property and transaction profile.
Home / Loan programs / Ground-Up Construction Loans
Investor & Non-QM
Ground-Up Construction Loans
Business-purpose construction capital for eligible residential investment projects from land or foundation through completion.
Nationwide qualifying business-purpose investment-property financing
Who it is built for
Start with the actual use case.
Builders and investors with plans, permits, budget, experience and a defined sale or hold strategy.
Key decision
Land basis, permits, builder capability, contingency, draws, completion value and takeout plan determine feasibility.
Build-to-rent
Eligibility and structure depend on the complete borrower, property and transaction profile.
Small residential development
Eligibility and structure depend on the complete borrower, property and transaction profile.
The direct answer
How this program works.
Ground-up investor financing starts with land, entitlements, plans and a completion/exit strategy. It is not a standard purchase of an existing home.
Compare the alternative
Compare build-to-sell with build-to-rent based on repayment and takeout risk.
Illustrative example
A $500,000 construction budget with a 10% contingency adds $50,000 before financing and holding costs. Confirm which costs are included in the lender budget.
Important boundaries
- Unapproved plans or incomplete utilities can delay funding.
- Construction and permanent loans have different conditions.
Source checked October 9, 2026: Kiavi — Investor financing lender examples ↗. Published guidance is educational; lender examples do not establish RedZone availability.
General structure
What gets reviewed.
- Business-purpose loan secured by an eligible investment property
- Property cash flow, rent support or approved alternative documentation
- Sponsor credit, liquidity, experience and required reserves
- Acceptable entity, appraisal, insurance and title structure
Potential advantages
Where it can work.
- Qualification may focus more heavily on the property or business purpose
- Structures may support acquisition, stabilization, renovation or portfolio growth
- Nationwide lender access can create multiple capital paths
Limitations
Where it can break.
- Programs, terms and property eligibility vary by lender and jurisdiction
- Prepayment provisions, recourse and reserves require careful review
- This category is not for owner-occupied consumer-purpose transactions
First-pass file map
Bring enough information to get a real answer.
The point is not to collect every document before a conversation. It is to avoid pricing a fantasy version of the transaction.
- 01Land/title and permits
- 02Plans, budget and builder history
- 03Equity, contingency and takeout plan
Program FAQs
Direct answers, clean qualifiers.
Who is Ground-Up Construction Loans designed for?
Builders and investors with plans, permits, budget, experience and a defined sale or hold strategy.
What can Ground-Up Construction Loans be used for?
Ground-Up Construction Loans may be considered for construction, acquisition plus construction, subject to the property, borrower, lender and jurisdiction.
What should I prepare for a Ground-Up Construction Loans review?
A useful first review commonly includes land/title and permits, plans, budget and builder history, equity, contingency and takeout plan. The final list depends on the selected lender and transaction.
What is the most important decision with Ground-Up Construction Loans?
Land basis, permits, builder capability, contingency, draws, completion value and takeout plan determine feasibility.
Is Ground-Up Construction Loans automatically available if I meet general guidelines?
No. Every transaction remains subject to credit, property, documentation, lender, program and jurisdiction approval. Published information is educational, not a commitment to lend.
Related financing lanes
Compare before you commit.
Property and jurisdiction first
Find out whether this lane fits the real transaction.
Content updated October 9, 2026 · Source checks do not constitute lending/compliance approval · Product availability and guidelines require transaction-specific confirmation · This is not a commitment to lend.