Ground-Up Construction Loans
Land and vertical build funded on a draw schedule that keeps pace with your crews. From a lender that funds with its own capital, so draws happen when the inspection clears — not when someone upstream gets around to it.
What Is a Ground-Up Construction Loan?
A ground-up construction loan is short-term financing that funds the acquisition of a lot and the cost of building a new structure on it, disbursed in stages as construction milestones are completed and verified. Private Loans US ground-up construction loans in Florida fund up to 85% of total project cost, capped at 70% of completed value, on 12 to 24 month terms with interest charged only on funds actually drawn.
Building from dirt is the most involved thing you can do in real estate, and financing it is the most involved thing we do.
You're borrowing against something that doesn't exist yet. The collateral on day one is a lot and a set of plans. By month six it's a slab and framing. By month twelve, if everything went right, it's a house with a CO and a buyer. Every one of those stages has a different value, a different risk, and a different amount of money that should be out the door.
A construction lender's whole job is to manage that — release enough money to keep the build moving, never so much that the loan gets ahead of the value. When it's done well you barely notice. When it's done badly, your framer's waiting on a check and you're on the phone with someone who's waiting on someone else.
We do it well. Mostly because there’s no “someone else.”
How Our Construction Loans Are Structured
Land advance. If you're buying the lot as part of the loan, we fund up to 60–75% of the land cost at closing depending on whether it's entitled and permit-ready. If you already own the lot free and clear, your equity in it counts toward your contribution — often that's most or all of your required equity.
Construction budget in escrow. Your hard costs, soft costs, and a contingency (we like to see 8–10%) are approved up front and held in a construction escrow.
Draws against completed work. Typically five to seven draws tied to milestones: foundation, framing/dry-in, rough mechanicals, drywall/interior, finishes, CO. You request, we inspect — usually within 3–5 business days in the major metros — and funds release on approval. We pay the GC directly or reimburse you, your call.
Interest-only on what's drawn. You're not paying interest on the full loan amount from day one. You pay on the land advance and whatever's been released. Most borrowers set up an interest reserve so the loan carries itself during the build.
The two caps. Total loan can't exceed 85% of total project cost or 70% of completed appraised value, whichever is lower. On most Florida infill builds the cost cap is the binding one.
Who We Fund for Ground-Up Construction
Experience matters more here than on any other product, and we're going to be direct about it.
If you've built before — as an owner-builder, a developer, or a GC — you're in good shape. Bring us the plans, the budget, the timeline, and your last project's numbers and we'll move fast.
If you haven't built before, you're not shut out, but the team around you has to be strong. That means a licensed Florida general contractor with a track record on this type of build, a real budget (not a per-square-foot guess), and a clear exit. Your leverage will be lower — probably 75–80% of cost rather than 85 — and we'll want more contingency.
Either way, what we need to see:
- Architectural plans (permit-ready or close to it)
- A line-item budget from your GC
- Permits in hand or a documented path to them with a timeline
- Your exit: spec sale, build-to-rent with a takeout lender identified, or pre-sold
- Credit above roughly 680 and liquidity to cover cost overruns beyond contingency
We fund single-family, townhome, duplex through fourplex, and small multifamily. Non-owner-occupied only.
Building in Florida: What Affects Your Loan
Florida is one of the busiest new-construction markets in the country, and it's also one of the more complicated places to build. A few things we underwrite around:
The Florida Building Code and wind zones. Wind speed design requirements vary by location, and coastal projects in HVHZ areas need impact glazing, specific roof-to-wall connections, and more engineering. It's more expensive per square foot and it takes longer to permit. Your budget needs to reflect where you're building, not a statewide average.
Permitting timelines aren't uniform. Some jurisdictions turn a single-family permit in three weeks. Some take three months. We'll want to know which one you're in before we set the term.
Hurricane season and your schedule. A build that's supposed to dry in during September in Lee County is a build with a schedule risk. We're not going to tell you not to build in the fall — but we are going to ask where your contingency is if you lose four weeks.
Impact fees and utility connection costs. These vary wildly by county and municipality and they're paid at permit, which means they're early in the draw schedule. Budget for them. Get the number from the county, not from a rule of thumb.
Insurance during construction. Builder's risk in Florida has gotten expensive. It's required, and it's a soft cost in your budget.
A Real Example: Infill Spec Build in Jacksonville
Developer owns a free-and-clear lot in Murray Hill valued at $95,000. Plans for a 1,850 sq ft 3/2 with a permit ready to pull. GC budget $285,000 including $25,000 contingency. Comps for new construction in the neighborhood: $475K–$510K.
Six draws over ten months. CO in month eleven. Sold in month thirteen at $495,000.
Program Terms
Typical terms for ground-up construction loans. Final pricing is based on the asset, leverage, and your exit.
How to Get a Construction Loan From Private Loans US
Submit the Get Started form with the lot address, land cost or current value, construction budget, and projected completed value.
Terms in 24 hours. Expect a follow-up call to walk through the plans and schedule.
We order the appraisal (as-completed) and review your plans and budget. You send us the GC contract, permit status, and your exit plan.
Close and fund. Land advance and escrow set-up at closing. First draw is usually foundation.
Construction Loan Questions
Ready to Fund Your Next Deal?
Tell us about the property. We'll send terms within 24 hours.