New Construction Loans2023-04-03T15:47:55-04:00

New Construction Loans

Financing for build-to-sell and build-to-rent properties

New construction loans, sometimes referred to as ground-up construction loans, are short-term financing for build-to-sell or build-to-rent properties. Hard costs, such as the purchase of land, materials and labor, as well as soft costs, such as permits, architectural plans, and engineering can all be financed through our ground-up loans. These are non-QM loans designed with investors and builders in mind.

New construction loans

High LTVs

Fast Funding

Non-QM Loans

New Construction Financing Details

1 – 4 Units

Loan to Value (LTV)* Initial loan: up to 75% of as-is value. Maximum loan amount: up to 75% of After Repaired Value (ARV); Up to 90% total loan to cost (LTC)
Term 18 months
Rates Starting at 11.49%
Property Types Non-owner occupied 1-4 units, condos, townhomes
Minimum Experience At least 1 ground up construction project
Minimum FICO 650
Loan Amount $50,000 – $3 million
Minimum Property Value $150,000 (as-completed value)
Borrower Type US-based business entities. Foreign National guarantors permitted.
Construction Funds Funded via Draws

* Assuming Entitlements, Permits & Approved Plans. Leverage based on documented experience in the last 3 years.

Ground-up Loan Application Process

Our loan process is simple – designed to help you close quickly and seamlessly. We know that time is money and our team’s goal is to help you move fast.

Apply for Loan

Upload required documents to our secure online loan portal

Underwriting reviews the file


Draw Process

Funds for rehab and construction work are distributed via draws. This process is quick and easy.

Frequently Asked Questions

What are your requirements and fees for ground-up construction loans?2022-07-03T16:28:44-04:00

Please refer to the New Construction Loans program overview for a list of requirements and fees.

Can I refinance the loan through Green Block?2022-05-22T17:23:20-04:00

Yes! We offer long-term 30 year rental loans for properties you intend to hold. We can refinance or cash-out refinance your existing loan after you’ve held it for at least 90 days. While the long-term loan cannot close until at least 90 days after your existing short-term loan has been held, we can begin the processing and underwriting of the loan prior to 90 days.

Can both soft and hard costs be included in the construction budget?2022-07-03T16:27:46-04:00

The construction budget may only include Hard and Soft Costs:

Hard Costs: Consists of all costs involved in the physical construction of the building and its infrastructure which includes all labor, materials, and any associated general contractor fees. A minimum of 10% hard cost contingency must be incorporated into the budget.

Soft Costs: Non-physical construction costs limited to 15% of the entire Construction Budget and may only include required permits, plans/architect fees, third party contractor fees, and city/county inspection fees.

What if I already own the land?2022-05-22T17:20:35-04:00

For borrowers who already own the land, the loan can contain a refinance or cash-out component. If the land is owned free-and-clear (without any encumbrances), a cash-out component is not required.

Can the new construction loan include the cost of the land?2022-05-22T17:19:50-04:00

Yes, up to the allowable maximum LTV/LTC.

How and when are loan funds disbursed?2022-05-22T17:19:04-04:00

If land is being purchased with the loan, funds (up to your maximum allowable LTV/LTC) are distributed at the closing. The construction portion of the loan, however, is not disbursed at the loan closing. Instead, the funds are provided via draws. Once a portion of the construction work has been completed, the borrower submits a draw request. We send an inspector to verify the work. Draw funds are wired to you for completed work verified by the inspector.

For loans where the land is already owned by the borrower, funds towards the refinance or cash-out (up to your maximum allowable LTV) are distributed at the closing. Construction funds are distributed via draws.

What is a ground-up construction or new construction loan?2022-05-22T17:17:27-04:00

New construction loans, sometimes referred to as ground-up construction loans, are short-term financing for build-to-sell or build-to-rent properties.

Who can borrow?2022-05-22T18:24:24-04:00

Our loans are for real estate investors looking to purchase, rehab, refinance, cash-out, or build investment properties. We lend only to legal business entities such as LLCs, LPs, or Corporations domiciled in the United States. We do not lend to individuals.

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